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Managing risk is key to the success of any initiative. Risk is considered to be inherent in any activity we do in project management and at any level. As part of managing risks, the portfolio manager applies multiple analyzes and uses tools to help dealing with risks. What does the portfolio manager use to visualize risks impact on portfolio strategic objectives such as profitability?

  1. Sensitivity Analysis
  2. Risk Breakdown Structure
  3. Efficient Frontier
  4. Probability and Impact matrix

Answer(s): A



Assume you are co-owner of a small consulting firm. Previously, you worked as a managing partner in one of the larger consulting firms in your country that had a defined portfolio management process to determine key opportunities to pursue to focus not solely on proposal win ratio but to aggressively emphasize capture ratio. Now in your new company in terms of portfolio management, the best practice to follow is to:

  1. Work with your business partner in terms of portfolio management
  2. Have your Board of Directors serve as a Portfolio Review Board
  3. Involve your business partner plus the firm's subject matter experts in portfolio decisions
  4. Set up an independent group of advisors to meet quarterly as a Portfolio Review Board

Answer(s): A



You have been recently assigned to a critical portfolio in your company and wanted to start right away and decided to begin with aligning the strategic management of the portfolio to the organizational strategy and objectives. For this you will use

  1. Prioritization Analysis, Interdependency Analysis, Cost-Benefit Analysis
  2. Strategic Alignment Analysis, Prioritization Analysis, Portfolio Component Inventory
  3. Scenario Analysis, Capability & Capacity Analysis
  4. Gap Analysis, Readiness Assessment, Stakeholder Analysis

Answer(s): B



By setting up portfolio categories and using a pair-wise comparison approach to rank components, as the portfolio manager, you feel that you are finally setting up and getting people to follow standard portfolio practices. Since portfolio management still is relatively new, progress is under way. As some components are added, and others are not continued, you are making sure if a component is terminated that it does not have dependencies with others in the portfolio. You need to then:

  1. Revise the ranking model
  2. Inform all stakeholders
  3. Update the roadmap
  4. Upgrade to a more detailed scoring model that includes dependencies with components

Answer(s): C






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