PMI Project Management Professional Practice Question

The correct answer is 'Inconsistent data protection laws across different jurisdictions.' This represents the most significant potential threat to compliance for several reasons:

1. Complexity: Different countries often have varying data protection laws (e.g., GDPR in Europe, CCPA in California, LGPD in Brazil). Navigating these diverse regulations is challenging and increases the risk of non-compliance.

2. Conflict of Laws: Some jurisdictions may have contradictory requirements, making full compliance difficult or impossible without careful planning and potentially complex technical solutions.

3. Extraterritorial Reach: Some data protection laws (like GDPR) have extraterritorial application, affecting how data is handled even outside the jurisdiction.

4. Severe Penalties: Violations of data protection laws can result in significant fines and reputational damage.

While the other options present challenges, they are generally more manageable:

• Varying transaction currencies can be addressed through proper financial systems and exchange rate management.
• Different tax regulations, while complex, typically have clearer guidelines and established practices for e-commerce.
• Diverse consumer protection laws, while important, usually don't carry the same level of complexity and potential for severe penalties as data protection laws in a multi-jurisdictional context.

The project manager must prioritize addressing the challenges posed by inconsistent data protection laws to ensure compliance across all operating jurisdictions.