Project Management Project Governance and Compliance 3 — Questions and Answers
Question 1: Which document establishes the governance framework for a specific project, including roles, responsibilities, and decision-making processes?
- Project management plan
- Project governance plan (Correct answer)
- Organizational process assets
- Enterprise environmental factors
Correct answer: Project governance plan
The project governance plan is dedicated to defining how the project will be governed, including escalation paths and decision rights.
Question 2: A project team member reports a potential ethics violation by a subcontractor. What governance mechanism should the PM invoke FIRST?
- Immediately terminate the subcontractor's work
- Follow the organization's ethics reporting and investigation procedure (Correct answer)
- Ignore it if the project deliverables are not affected
- Discuss it only within the team to avoid escalation
Correct answer: Follow the organization's ethics reporting and investigation procedure
Organizations have established ethics reporting mechanisms that ensure violations are handled consistently, fairly, and in compliance with legal requirements.
Question 3: What is the role of a project steering committee?
- To write the project schedule and assign tasks
- To provide strategic oversight, resolve escalated issues, and approve major changes (Correct answer)
- To conduct daily stand-up meetings with the team
- To manage procurement contracts directly
Correct answer: To provide strategic oversight, resolve escalated issues, and approve major changes
A steering committee provides high-level governance by making strategic decisions, approving significant changes, and removing organizational barriers.
Question 4: Data privacy regulations (e.g., GDPR) require that personal data be handled in specific ways. If a project collects user data, when should compliance requirements be incorporated?
- Only during the closing phase when deliverables are finalized
- During project initiation and planning, before data collection begins (Correct answer)
- After the first compliance audit flags deficiencies
- Only if the legal department specifically requests it
Correct answer: During project initiation and planning, before data collection begins
Compliance requirements must be identified and built into the project plan from the start to avoid costly rework or legal exposure.
Question 5: Which PMI ethical standard requires project managers to report accurate information even when it is unfavorable?
- Respect
- Fairness
- Honesty (Correct answer)
- Responsibility
Correct answer: Honesty
PMI's Code of Ethics emphasizes honesty, which requires truthful and accurate reporting regardless of whether the information is favorable or unfavorable.
Question 6: A project operates in a heavily regulated industry. The project manager builds compliance checkpoints into every phase. This practice BEST reflects which governance principle?
- Cost optimization
- Proactive compliance integration (Correct answer)
- Scope creep prevention
- Resource leveling
Correct answer: Proactive compliance integration
Embedding compliance checkpoints throughout the project lifecycle ensures regulatory requirements are continuously met rather than addressed only at the end.
Question 7: Which term describes the documented process for requesting, evaluating, and approving changes to project baselines?
- Configuration management system
- Integrated change control process (Correct answer)
- Risk response planning
- Quality assurance process
Correct answer: Integrated change control process
Integrated change control is the formal governance process that evaluates all change requests and authorizes modifications to the project baselines.
Project Management Project Governance and Compliance 3
Which document establishes the governance framework for a specific project, including roles, responsibilities, and decision-making processes?