PMP Question #717: Real Exam Question with Answer & Explanation

Question

A company is implementing a growth strategy by constructing a new production facility, which will soon move into the operation phase. Although a governance policy was already in place, the company must comply with new financial regulations that have been recently implemented. Compliance with the regulations will cause a major change in project scope. How should the project manager respond to this requirement?

Options

• APerform an analysis to assess the Impact on the project.
• BProceed with the existing company governance policy.
• CEscalate the issue to upper management and let them decide.
• DDirectly comply with the financial regulations.

Explanation

When new financial regulations cause a major project scope change, the project manager should first perform an analysis to assess the impact on the project.

Common mistakes.

• B. Proceeding with the existing governance policy when new financial regulations are in place would lead to non-compliance, exposing the company to significant legal and financial risks.
• C. Escalating the issue to upper management is often a necessary step for major changes, but it should typically follow the project manager's initial assessment of the impact, allowing them to present data-backed options or recommendations.
• D. Directly complying with new regulations without a prior impact analysis could lead to unforeseen problems, inefficient implementation, or conflicts with existing project constraints and objectives.

Concept tested. Change Management, Regulatory Compliance

Reference. https://www.pmi.org/learning/library/change-management-project-management-8698

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