Project Management Professional Practice Question

Financial penalties are typically the most immediate and impactful consequence of noncompliance with regulatory standards. They directly affect the project budget and can have a ripple effect on other aspects of the project, including scope and timelines. While increased scrutiny and the need for corrective actions are also consequences of noncompliance, they do not generally have the same immediate financial impact as penalties. Reputational damage is significant but more nebulous and long-term in nature compared to direct financial penalties.