A project is in its first of six iterations.

A new vendor with limited history introduces uncertainty in availability, lead time, quality, and reliability—this is a project risk that must be captured early. The first step is to register the risk and outline appropriate response options (A). This ensures visibility, enables analysis (probability/impact), and supports selecting strategies such as mitigation (qualify alternates, add schedule buffers, early prototyping), transfer (contract terms, warranties), or acceptance with contingency triggers. Escalating immediately to procurement (C) or the sponsor (D) may be appropriate later depending on risk exposure and authority levels, but escalation is not the first action because the risk must be defined and framed with potential responses to enable a productive decision. Option B is misleading—prioritization and implementation planning come after initial identification and response option development. By recording the risk and proposing response options early in iteration 1, the team protects the delivery plan for subsequent iterations and reduces the chance the dependency becomes a late-stage blocker.

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