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Portfolio Management Professional Questions 141–145 (page: 30)

Updated On: 10-Feb-2026

You have been assigned as the manager for a major transformation portfolio in your company. You have a new direction in sight and you need to work with the team to attain the end goal and achieve the expected strategy. You are currently defining the portfolio and with the purpose of

  1. Creating an up-to-date list of qualified portfolio component
  2. Allocating resources to develop component proposals or execute portfolio components
  3. Balancing the portfolio for performance and value delivery
  4. Making Governance Decisions

Answer(s): A



In your telecom company, a number of criteria must be considered as you develop your approach to prioritize components in the portfolio. Your management insists that to be competitive the products must be first to market or the window of opportunity is lost with the result being not only lost revenues but also lost productivity. Another criterion to consider
is:

  1. External dependencies
  2. Goals and objectives
  3. Customers
  4. Regulatory compliance

Answer(s): D



Risk management is an integral part of project, program and portfolio management and is invoked throughout the project, program and portfolio life cycle. Which of the following highlights the difference between portfolio risk and program or project risks?

  1. Portfolio risks focus on strategies, whereas program and project risks focus on implementation
  2. Portfolio Risks may be actively accepted in anticipation of high rewards, whereas, program and project level risks are not
  3. Portfolio risks are the aggregation of subsidiary programs and projects risks
  4. Portfolio risks can not be mitigated to other third parties, whereas program and project risks can

Answer(s): B



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. Risk is part of project, program and portfolio management and has a different exposure in each and every one. When it comes to Managing portfolio risks, a risk owner, along with the portfolio manager, should select the strategy or mix of strategies most likely to be effective. Which of the following may be the responsibility of a risk owner when it comes to managing risks?

  1. Select primary and alternative strategies
  2. Make decisions to choose the most appropriate response strategy or mix of strategies and develop specific actions to implement those decisions
  3. All of the options
  4. Develop contingency plans and identify the conditions which trigger their execution

Answer(s): C



Resources allocation and optimization for use is key to a successful portfolio. You have assigned human resources, funds and other required assets to a component that you have initiated recently. What should have been done prior to being able to to that?

  1. Managed Portfolio Value
  2. Communicated the decision to all stakeholders
  3. Prioritized the component
  4. Authorized the component

Answer(s): D



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