PGMP practice question 13 of 35

A global financial system is being delivered by the program team to allow access from anywhere in the world. Following a new cross-border regulation…

Choose your answer, then check it against the explanation.

A global financial system is being delivered by the program team to allow access from anywhere in the world. Following a new cross-border regulation applying to privacy of local banking data accessed from abroad, the CEO of the bank requests that an external audit be conducted to validate compliance with this new regulation. This event, which was not anticipated at this phase of the program, will generate additional work for the program team. This effort is not included in the current program roadmap and benefits delivery plan. What immediate actions should the program manager take?

Answer options

Correct Answer:

Explanation

The new regulation and the subsequent CEO request for an audit represent a significant, unplanned event that impacts the program. According to standard program management practices, the first and most critical step when faced with such a change is to conduct a thorough impact analysis. This assessment will determine the effects of the additional work on the program's schedule, budget, resources, risks, and, most importantly, its ability to deliver the planned benefits. This analysis provides the necessary information for the program manager and governance body to make an informed decision on how to proceed, which may include updating the program roadmap and other subsidiary plans.

Why Incorrect

A. Negotiating to avoid a compliance audit is unprofessional and ignores a critical business and legal requirement mandated by the CEO.

B. De-scoping a core capability is a major strategic decision and a premature reaction that should only be considered after a comprehensive impact analysis.

C. Accepting the risk and continuing as planned is negligent, as it ignores a direct executive mandate and a new compliance requirement, exposing the organization to significant legal and financial risk.

References

1. Project Management Institute. (2017). The Standard for Program Management (4th ed.). Section 3.4

Program Change Management. This section details the process for managing changes

which begins with identifying and then assessing the impact of a change before any other action is taken. The CEO's request is a form of change request.

2. Project Management Institute. (2017). The Standard for Program Management (4th ed.). Section 3.1.4.2

Monitoring and Controlling the Program Environment. This section states that program managers are responsible for monitoring external environmental factors (such as new regulations) and "assessing their impact on the program's business case

objectives

and benefits."

3. Project Management Institute. (2017). The Standard for Program Management (4th ed.). Figure 3-13

Program Change Management. This figure illustrates the standard process flow

which clearly shows that after a change is identified

the next step is to "Assess Impact of Change" before it is approved

rejected

or deferred.

Question 13 of 35

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