PMP Practice Question: Business Environment: strategy and project benefits
You are managing a project in a highly regulated industry. An audit reveals that your project is not fully compliant with a new data privacy regulation. The regulation requires specific data handling procedures that your team has not implemented. What should you do first?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Submit a change request to incorporate the regulatory requirements and assess impact on schedule and budget
The first step is to analyze the gap and submit a change request to implement the required procedures. Compliance is non-negotiable, but changes must follow the formal process.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Submit a change request to incorporate the regulatory requirements and assess impact on schedule and budget
Why this is correct
Submitting a formal change request is the correct project management procedure for incorporating new regulatory requirements. This ensures that the impact on the project's scope, schedule, budget, and quality is thoroughly assessed, documented, and approved by the Change Control Board (CCB) before implementation. This systematic approach maintains project governance, prevents unauthorized scope creep, and ensures all stakeholders are aligned with the necessary adjustments to achieve compliance effectively.
- ✗
Ignore the audit findings because the project is almost complete
Why it's wrong here
Ignoring audit findings related to regulatory compliance is a severe breach of professional ethics and project governance. Such inaction exposes the project and the organization to significant legal penalties, reputational damage, and potential operational shutdowns, directly jeopardizing project success and organizational viability. Project managers have a fiduciary and ethical duty to address all compliance issues promptly and formally, regardless of project completion status.
- ✗
Immediately implement the required procedures to avoid legal penalties
Why it's wrong here
Immediately implementing required procedures without following the integrated change control process bypasses critical governance mechanisms. While compliance is paramount, making changes outside of formal processes can lead to unassessed impacts on other project constraints, introduce new risks, or result in inefficient solutions. A structured change request ensures proper analysis, stakeholder communication, and controlled integration of the new requirements, preventing unintended negative consequences.
- ✗
Update the risk register and continue as planned until the regulation is enforced
Why it's wrong here
Merely updating the risk register and continuing as planned until regulation enforcement is insufficient and reactive, rather than proactive. Regulatory requirements are not merely risks to be monitored; they are known compliance obligations that demand active management and incorporation into the project plan. Waiting for enforcement increases the likelihood of non-compliance, potential fines, and rushed, costly remediation efforts, undermining the project's ability to deliver a compliant product or service.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PMP practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PMP exam.