PMP Practice: Define Success Metrics

Ji-Hyun Kwon is managing a hybrid project at Karibu Data Systems to develop a customer portal that will integrate legacy systems (predictive waterfall approach) with new AI-powered chatbot features (agile sprints). During the governance framework setup, the Chief Compliance Officer insists that all sprint demos and incremental releases require a formal sign-off process with three-day review periods to ensure regulatory adherence. The Product Owner argues this will kill team velocity and customer feedback loops, demanding that agile components remain exempt from approval gates. The project charter grants the PM authority to establish appropriate governance structures. The compliance officer has cited two recent regulatory fines totaling $2.3 million from competitor companies that released non-compliant features. What should Ji-Hyun do to best resolve this governance conflict?