PMP · Question 10 · Task 1: Plan and manage project compliance
A project manager is quantifying the potential impact of non-compliance with a new data protection law. The legal team estimates a 20% probability of a fine of $500,000 if the project is found non-compliant. The cost to implement the necessary controls is $80,000.<br/><br/>Based on Expected Monetary Value (EMV) analysis, what is the MOST logical business decision?
Answer options:
Do not implement controls because the cost ($80,000) is less than the fine ($500,000).
Implement the controls because the cost ($80,000) is less than the risk exposure ($100,000).
Do not implement controls because the cost ($80,000) is greater than the risk exposure ($10,000).
Implement the controls regardless of cost because compliance is mandatory.
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