A large multi-national company works on a project in an emerging-economy country.

When a project encounters financial concerns due to currency instability, it is essential for the project manager to communicate and escalate the issue to the project sponsor. This is because the sponsor has the authority to make decisions on how to proceed and can provide guidance on managing the risk. The PMBOK Guide emphasizes the importance of involving stakeholders when risks arise1. Additionally, the PMI’s standards for risk management suggest that risks should be escalated to higher authorities when they are outside the project team’s control2.