Project Governance and Compliance Flashcards
6 cards from real Project Management practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Project Governance and Compliance flashcards as text
A project is approaching the end of a major phase. According to the project governance plan, a formal review is required where key stakeholders and the sponsor will decide whether to provide additional funding and authorize the start of the next phase. This formal governance checkpoint is BEST known as a:
Answer: Phase Gate review
A Phase Gate (or Stage-Gate) review is a formal checkpoint at the end of a project phase where key stakeholders and decision-makers review progress, assess the business case, and make a formal decision to continue to the next phase, make modifications, or terminate the project. It is a critical component of project governance.
Which of the following is a primary function of a project steering committee within a project governance framework?
Answer: Providing high-level strategic direction and making key go/no-go decisions.
The steering committee is a high-level governance body composed of senior stakeholders and executives. Its primary role is to provide strategic oversight, ensure alignment with business objectives, resolve major issues, and make critical decisions, such as approving significant changes or authorizing project continuation.
A project manager is leading a project in the pharmaceutical industry. During execution, a new federal regulation concerning clinical trial data reporting is enacted. What should be the project manager's FIRST action to ensure compliance?
Answer: Immediately consult with the organization's legal and regulatory departments to assess the impact.
When a new legal or regulatory requirement emerges, the project manager's first responsibility is to understand its specific impact on the project. The most appropriate and effective way to do this is by engaging the organization's experts in that domain, such as the legal and regulatory compliance departments. This ensures a correct interpretation and a formal assessment of necessary changes.
An organization has a Project Management Office (PMO) that provides project managers with templates, best practices, and training upon request. The PMO serves as a repository of information but does not enforce compliance with its methodologies. What type of PMO is this?
Answer: Supportive
A Supportive PMO operates with a low degree of control. It acts as a consultative body and a project repository, providing resources like templates, best practices, and lessons learned. It does not mandate compliance or directly manage projects.
During a post-project audit, it was discovered that a vendor was selected without following the mandatory three-bid process outlined in the organization's procurement policy. This represents a failure in which area of compliance?
Answer: Organizational compliance
Organizational compliance refers to adhering to the internal policies, procedures, and standards set by the organization itself. Failing to follow the company's mandated procurement policy is a direct violation of organizational rules.
Which of the following BEST describes the primary purpose of a project governance framework?
Answer: To establish the structure, processes, and decision-making models for managing and controlling the project.
A project governance framework provides the overarching structure for project control and decision-making. It defines roles, responsibilities, and the processes for how the project will be directed, managed, and held accountable to ensure it aligns with strategic objectives. It is the 'who' and 'how' of decision-making, not the 'what' of daily tasks.