Crucial Exams

Project Management Professional Practice Question

Your organization's standard operating procedure (SOP) states that any issue causing more than a 10 % cost variance must be escalated directly to the PMO. You are managing a small, low-risk internal software-update project with tight schedule constraints but modest budget exposure. While drafting the project governance plan, how should you define the escalation thresholds for this project?

  • Remove escalation thresholds entirely and escalate every issue immediately to the PMO since the project is small.

  • Adopt the SOP's 10 % cost-variance threshold exactly to maintain consistency across all projects.

  • Postpone defining escalation paths until the executing phase when actual variances appear.

  • Tailor escalation thresholds to the project's size, risk, and stakeholder tolerance while remaining aligned with organizational governance.

Project Management Professional
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