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    PracticePMI PMP®PMI PMP Practice Exam 5Question 30
    Hard1 markMultiple Choice
    Task 14: Establish project governance structureproject governancedecision making authorityescalation thresholdsoversight structure

    PMP · Question 30 · Task 14: Establish project governance structure

    A project manager is establishing governance structure for a large, complex project involving multiple vendors, internal teams, and regulatory requirements. The project has high organizational visibility and significant business impact. Senior leadership wants to ensure appropriate oversight without micromanaging the project team. What should the project manager do FIRST when establishing the governance structure?

    Answer options:

    A.

    Define decision-making authority levels and escalation thresholds based on project complexity and organizational impact

    B.

    Create a steering committee with all senior stakeholders to provide project oversight

    C.

    Implement the organization's standard project governance framework

    D.

    Schedule regular governance review meetings with senior leadership

    How to approach this question

    When establishing governance, define decision-making authority and escalation thresholds first to ensure appropriate oversight levels without micromanagement.

    Full Answer

    A.Define decision-making authority levels and escalation thresholds based on project complexity and organizational impact✓ Correct
    A
    Effective governance requires clear definition of who makes what decisions at what levels, with appropriate escalation thresholds that balance oversight needs with project execution efficiency.

    Common mistakes

    Students often choose committee creation (B) or standard frameworks (C), missing the need to first define decision-making authority and escalation thresholds for effective governance.
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