Clarification on Escalation vs. Risk Register for External Threat

Hi all,

I came across the following PMP scenario and I’m unsure about the correct approach according to PMBOK guidance:

A project manager is tracking an infrastructure project that is dependent on a service provider. The service provider informed the project manager that some of the third-party components will no longer be manufactured or supported. Upon an initial review, this would significantly delay the schedule and increase the budget.

Options:A. Escalate this issue to the project sponsor.B. Update the risk register.C. Convene a review with the team.D. Update the project status to reflect these findings.

The official solution says A. Escalate to the sponsor, reasoning that it is an external threat beyond the PM’s control.

My doubts:

The scenario does not explicitly state that the threat is beyond the PM’s authority. Couldn’t the PM first assess alternatives?
Option C (convene a review with the team) seems proactive to explore mitigation options.
Option B (update the risk register) is also important to formally document and monitor the risk.

From a PMBOK perspective, would the first action always be escalation in this case, or should assessment and documentation (B or C) come first before escalating?

I’d really appreciate any insights or references from PMBOK or real PMP exam reasoning.

Thank you!

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