Free PMI Project Management Professional (PMP) Practice Question

The correct answer is 'Inconsistent data protection laws across different jurisdictions.' This represents the most significant potential threat to compliance for several reasons:

1. Complexity: Different countries often have varying data protection laws (e.g., GDPR in Europe, CCPA in California, LGPD in Brazil). Navigating these diverse regulations is challenging and increases the risk of non-compliance.

2. Conflict of Laws: Some jurisdictions may have contradictory requirements, making full compliance difficult or impossible without careful planning and potentially complex technical solutions.

3. Extraterritorial Reach: Some data protection laws (like GDPR) have extraterritorial application, affecting how data is handled even outside the jurisdiction.

4. Severe Penalties: Violations of data protection laws can result in significant fines and reputational damage.

While the other options present challenges, they are generally more manageable:

• Varying transaction currencies can be addressed through proper financial systems and exchange rate management.
• Different tax regulations, while complex, typically have clearer guidelines and established practices for e-commerce.
• Diverse consumer protection laws, while important, usually don't carry the same level of complexity and potential for severe penalties as data protection laws in a multi-jurisdictional context.

The project manager must prioritize addressing the challenges posed by inconsistent data protection laws to ensure compliance across all operating jurisdictions.