Situation 1

Fred has been recently appointed as the project manager for a new, high-profile information system. After undertaking an initial estimation, Fred recognizes that the project will cost four times the costs being talked about by the project's business sponsor. Fred realizes that when informed of the revised estimates, the project sponsor will not approve the project. Fred also knows that if the project is not approved, his job and the jobs of a number of system professionals will be at risk.After some consideration, Fred deliberately underestimates the cost of the project, taking a relatively low risk that by delaying notification of the true costs until the project is well underway, the project sponsor will be reluctant to stop the project.