Compliance with Legal and Regulatory Requirements in Risk Management Ethics

Correct Answer: Update the methodology to meet both local regulations and PMI's ethical standards while consulting with legal experts

The best approach is to update the methodology to meet both local regulations and PMI's ethical standards while consulting with legal experts. Here's why: 1. It addresses both compliance requirements simultaneously 2. It demonstrates professional responsibility by seeking expert legal guidance 3. It maintains ethical integrity while ensuring regulatory compliance 4. It creates a unified, clear approach rather than conflicting systems Why other options are suboptimal: - Following only local regulations fails to uphold professional ethics commitments - Maintaining dual documentation systems creates unnecessary complexity and potential inconsistencies - Applying just the stricter standard may still result in compliance gaps and doesn't address the root cause of the conflict The chosen solution provides a balanced, professional approach that respects both legal obligations and ethical commitments while seeking expert guidance to ensure proper implementation.

Correct Answer: Apply the stricter requirement when faced with varying standards

When managing risks across multiple international jurisdictions, applying the stricter requirement is the best practice because: 1. It ensures compliance with all applicable regulations and standards 2. It provides the highest level of risk protection 3. It reduces the likelihood of regulatory violations 4. It demonstrates due diligence in risk management Other options are incorrect because: Following standards of the team's primary location could violate regulations in other jurisdictions where the project operates. Basing practices on the funding source location overlooks local regulatory requirements and may lead to compliance issues. Adapting measures independently for each jurisdiction could create inconsistencies, increase complexity, and potentially miss cross-jurisdictional risks that require coordinated management. The stricter requirement approach ensures the project maintains the highest standards while satisfying all regulatory requirements across jurisdictions.

Correct Answer: Follow the strictest applicable regulations while maintaining transparency with stakeholders

In risk management, when facing conflicts between local regulations and international standards, the professional should follow the strictest applicable regulations while maintaining transparency with stakeholders. This approach ensures: 1. Legal compliance is maintained 2. The highest ethical standards are upheld 3. All stakeholders are informed and aware of the decision-making process 4. Risk is minimized by adhering to the most stringent requirements The other answers are incorrect because: Prioritizing international standards over local regulations could lead to legal compliance issues and potential penalties. Following only local regulations might miss important risk management practices that are considered global best practices. Relying solely on personal judgment introduces unnecessary subjectivity and potential inconsistency in risk management practices, which could expose the organization to additional risks.