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Portfolio Management Professional Questions 216–220 (page: 45)

Updated On: 10-Feb-2026

Assume you are the portfolio manager for a legacy software company. For many years, your company was one of the top five leaders in software development, but as newer and more efficient software was invented, it began to lose market share. Your company then found its services were needed as legacy systems were converted, especially since Cloud computing now is so popular. But it has lost revenues increasingly over the years. To gain market share and provide greater portfolio value, the executive team decided it should:

  1. Focus on channel partnerships
  2. Hire people with competencies in Cloud computing and enter this market
  3. Recognize change takes time but retrain employees to enhance customer satisfaction
  4. Focus on supplier value by partnering agreements

Answer(s): A



You prepared a portfolio risk management plan when you replaced the previous portfolio manager three years ago. However, recent structural and execution risks have affected the portfolio adversely, resulting in lost opportunities and a decrease in overall return on investment. You are updating the risk management plan as now stakeholders can see its value. In doing so, you can use some portfolio process assets such as:

  1. Lessons learned
  2. Portfolio algorithms
  3. Vision statements
  4. Risk categories

Answer(s): B



Strategies are changing, the portfolio mix is changing, the portfolio is progressing and you are doing a great job optimizing the mix of components. What tools and techniques are you using in the case?

  1. Weighted Ranking and scoring techniques, Portfolio Component inventory, Categorization
  2. Integration of Subsidiary Plans, Organizational Structure Analysis, Elicitation techniques
  3. Capability & Capacity Analysis, Weighted Ranking and scoring techniques, Graphical Analytical Methods, Quantitative & Qualitative Analysis, PMIS
  4. Capability & Capacity Analysis, Weighted Ranking and scoring techniques, Graphical Analytical Methods, Quantitative & Qualitative Analysis

Answer(s): D



In managing strategic change, the portfolio manager performs stakeholder analysis in order to consider the changing requirements. Which of the following options is referenced in this
case to provide guidance on the communication required to ensure successful change?

  1. Portfolio Strategic Plan
  2. Portfolio Management Plan
  3. Portfolio Roadmap
  4. Portfolio Charter

Answer(s): B



One of your component managers came to you to tell you about a risk affecting his component that will badly impact the component and might affect the portfolio. After assessment, the risk turned out to be of low probability with high impact. What do you do as a portfolio manager?

  1. Inform him to submit a change request to raise the component contingency because of this risk
  2. Inform the component manager to add the risk to the risk register and follow up on it closely
  3. Inform the component manager to add the risk to the risk register, assign a senior risk owner to it in order to follow up on it closely
  4. Inform him that he does not need to worry, you will have a risk contingency reserve for his risk at a portfolio level

Answer(s): D



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