PMP Practice: Establish Governance Structure and Policies

Xiu-Ying Huang is managing a regulatory compliance project for Ginger Hyperdrive Inc, a pharmaceutical company upgrading its clinical trial data systems to meet new federal requirements. The project charter has been approved with a fixed deadline tied to the regulatory enforcement date. During governance planning, Dante identifies several decision points that will require senior leadership input, including scope changes driven by evolving regulations, budget reallocations between departments, and vendor contract modifications. The CFO and Chief Compliance Officer have both expressed concern about being pulled into frequent meetings, stating they trust Dante to manage day-to-day issues. However, the CEO has emphasized that any decisions affecting regulatory compliance timelines or audit exposure must involve executive review. Dante needs to establish clear escalation thresholds that balance leadership involvement with project efficiency. Which approach would be MOST effective?