hard · Project Management Professional hybrid

A vendor providing kiosks for the Driftwood Health project informs the project manager that a component failure has halted production. The project manager identifies this as a conflict of interest, as the vendor's CEO is a relative of the Driftwood Health sponsor.

What should the project manager do first?

  1. Negotiate with the vendor to fix the production issue before the sponsor discovers the relationship.
  2. Ask the sponsor to handle the vendor production issue directly since they have a personal relationship.
  3. Formally disclose the conflict of interest to the compliance department and document it in the project records.
  4. Terminate the contract with the vendor immediately to avoid any appearance of impropriety. given the information provided

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