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ACCA Strategic Professional · Strategic Business Leader · Public sector governance

A government agency runs a major IT project for benefit payments. Ministers press for an early launch, and a risk register shows serious testing gaps that staff hesitate to escalate because earlier bad news was punished. Which governance weakness is most evident?

The main weakness is the absence of a risk-aware culture with open upward reporting. Staff fear punishment for escalating bad news, so known testing gaps do not reach decision makers, undermining accountability and increasing the chance of project failure under ministerial pressure.

  1. ALack of a risk-aware culture and upward reporting channelsCorrect
  2. BExcessive shareholder influence
  3. COver-reliance on external auditors
  4. DPoor dividend policy

Explanation

Staff fear escalating bad news, so risk information does not reach decision makers. This is a weakness in risk culture and communication, and it undermines accountability. The other options have no link to a government agency's situation as described.

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