A project is on time and within budget, yet it is unclear who holds the authority to approve a significant change to scope. What governance problem does this most likely indicate?
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EProject controls that are excessively restrictive
✓ Correct answer: A. Poorly defined decision-making authorityA core requirement of governance is that it clearly defines who is authorised to make significant decisions; without this, critical choices cannot be made in a controlled way.
Why the other options are incorrect:
• Inadequate monitoring of project performance: Performance monitoring is working adequately here; the problem is that approval authority is not clearly assigned.
• Insufficient tracking of project benefits: The scenario does not point to any issue with tracking benefits.
• Failure to identify relevant project risks: Identifying risks more thoroughly would not resolve the question of who can approve scope changes.
• Project controls that are excessively restrictive: The concern is that controls are ambiguous, not that they are too tight.
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