PMI CAPM (Certified Associate in Project Management) Examination Content OutlineRisk Management and ComplianceMedium
A construction project is subject to strict environmental protection laws. The project manager must ensure all activities comply with these regulations to avoid significant fines and project delays. Which type of compliance requirement is the project manager primarily addressing?
- AContractual agreements
- BIndustry best practices
- CRegulatory frameworks
- DInternal organizational policies
Show answer & explanationAnswer & explanation
Correct answer: C. Regulatory frameworks
Environmental protection laws are examples of regulatory frameworks established by government bodies, which projects must adhere to for legal compliance.
Why the other options are wrong
- A. Contractual agreements are specific to the project's contract, not general laws applicable to all projects in a region.
- B. Industry best practices are guidelines for optimal performance, not legally binding requirements.
- D. Internal policies are set by the organization itself, not external laws.
Regulatory Frameworks
A system of laws, regulations, guidelines, and standards that are enforced by external governmental or authoritative bodies, which projects must comply with.
- Legally binding requirements.
- Imposed by external authorities.
- Non-compliance can lead to penalties (fines, delays).
Memory trick: Regulatory = Rules from the 'R'ulers.