A project manager is starting a new project in an organization that has a well-established project management office (PMO). The PMO has templates for project charters, risk registers, and status reports. What should the project manager do to establish effective governance?

Ask the PMO to manage the project governance entirely.

Use the PMO templates and align the project governance with the organization's standards.

Create new templates from scratch to tailor the project specifically.

Use the templates but do not follow the PMO's reporting requirements.

Which of the following is an example of an escalation threshold?

Cost variance exceeding 10% of the budget

Team member's personal preference

A project manager is leading a project with a steering committee that includes the sponsor, a finance director, and an operations manager. The sponsor has delegated authority for budget changes up to $100,000, but the finance director insists that any budget change over $50,000 must also be approved by the finance department. The project manager needs to define the governance structure. What should the project manager do?

Set the escalation threshold at $50,000 to the steering committee for all budget changes.

Follow only the sponsor's delegation, as the sponsor has the highest authority.

Ask the finance director to defer to the sponsor's authority.

Document the sponsor's delegation and the finance director's requirement, and define a dual-approval process for budget changes over $50,000.

A project manager is establishing escalation paths for a project. The organization has a matrix structure, and the project manager reports to both a functional manager and a program manager. The project manager needs to define how issues will be escalated. What should the project manager do?

Escalate all issues to the functional manager, as they control resources.

Let the team decide who to escalate to based on their relationships.

Escalate all issues to the program manager, as they have overall project authority.

Define escalation paths based on the type of issue, such as resource issues to the functional manager and project issues to the program manager.

What is the primary purpose of defining a governance structure for a project?

To assign project team members to specific tasks

To establish roles, responsibilities, and decision-making authority

To create a detailed project schedule

To identify project risks and mitigation strategies

Project Management Professional (PMP)

Domain 3Objective 1

Task 1 Define and Establish Project Governance PMP Practice Questions (Page 3)

Part of the Business Environment domain, which accounts for 26% of the PMP exam. PMI does not publish an official question count, but from its 230-minute exam (~90–155 total, ~23–40 in this domain), expect 3–5 from this objective — we provide 36 practice questions to prepare you well beyond it. (estimate)

36questions here

8free pages

9concepts

26%of the exam

Questions 11–15

11application · medium
A project manager is starting a new project in an organization that has a well-established project management office (PMO). The PMO has templates for project charters, risk registers, and status reports. What should the project manager do to establish effective governance?
Select an answer first
12foundation · easy
Which of the following is an example of an escalation threshold?
Select an answer first
13expert · hard
A project manager is leading a project with a steering committee that includes the sponsor, a finance director, and an operations manager. The sponsor has delegated authority for budget changes up to $100,000, but the finance director insists that any budget change over $50,000 must also be approved by the finance department. The project manager needs to define the governance structure. What should the project manager do?
Select an answer first
14expert · hard
A project manager is establishing escalation paths for a project. The organization has a matrix structure, and the project manager reports to both a functional manager and a program manager. The project manager needs to define how issues will be escalated. What should the project manager do?
Select an answer first
15foundation · easy
What is the primary purpose of defining a governance structure for a project?
Select an answer first

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