Avoidance of Conflicts of Interest

Correct Answer: Report the conflict of interest to the PMO and ethics committee

Reporting the conflict of interest to the PMO and ethics committee is the most appropriate and ethical response because: 1. It upholds project governance and organizational ethics 2. It addresses potential preferential treatment in vendor selection 3. It protects the organization from potential legal and reputational risks 4. It maintains transparency and fairness in the procurement process The other options are inadequate because: Merely documenting and communicating the changes fails to address the underlying ethical issue and could make one complicit in the conflict of interest. Requesting the sponsor to transfer shares is inadequate as the conflict has already occurred and the action may not resolve the ethical breach that has taken place. Analyzing the criteria for quality alignment misses the core ethical issue and could be seen as enabling improper behavior by focusing on technical aspects rather than the ethical violation.

Correct Answer: Report the potential conflict of interest to the project governance board for evaluation

Reporting the potential conflict of interest to the project governance board represents the most ethical and professional approach because: 1. It ensures full transparency and maintains organizational integrity 2. It allows proper evaluation by appropriate authorities 3. It follows PMI's Code of Ethics and Professional Conduct regarding conflicts of interest 4. It protects both the organization and the colleague from potential future issues The other options are problematic because: Allowing participation with additional oversight still presents a conflict risk and may compromise decision integrity. Transferring responsibilities secretly fails to address the underlying ethical issue and lacks transparency. Merely declaring past relationships and continuing with enhanced protocols doesn't provide sufficient safeguards and may not meet organizational governance requirements. Best practice in risk management requires proactive disclosure and formal evaluation of potential conflicts of interest through proper channels.

Correct Answer: Document the potential conflict in the risk register and notify project stakeholders

The best initial action is to document the potential conflict in the risk register and notify project stakeholders. Rationale: 1. This approach follows proper risk management protocols by documenting the issue formally 2. It ensures transparency by informing relevant stakeholders 3. It allows for proper assessment and decision-making by project leadership 4. It maintains ethical standards and professional integrity Why other options are inadequate: - Requesting confidentiality and monitoring does not address the conflict of interest and could lead to trust issues - Transferring the team member as an initial response is too drastic before proper assessment and documentation - Adding another non-disclosure agreement does not resolve the fundamental conflict of interest issue and may not provide adequate protection Best practice in risk management requires clear documentation and communication of potential conflicts before taking any corrective actions. This allows for proper evaluation and ensures all stakeholders can participate in determining the most appropriate resolution path.