Practice Test 2 ◾ 255
160. Having managed a major program in your rice producing company, you
found it valuable to maintain a program risk register. Now assume you are
the portfolio manager. Yesterday there was an unexpected risk to the port-
folio’s key component as the product had to be recalled because of safety
issues. An investigation into the root cause is under way, and before the
product can return to the market, an inspection by a regulatory ofcial will
be necessary. You have been using a risk register to track all identied risks
until they are closed and have added this risk to it. One of the benets of
the risk register is that it:
a. Ensures all risks are documented
b. Assigns an owner to each risk
c. Denes the frequency needed for risk identication
d. Contains probability and impact information for the risks in the register
161. Assume your government agency set up a Portfolio Oversight Committee
chaired by the head of the Agency. The other members are the Directors’ of
the Agency’s departments. You are its Knowledge Management Ofcer and
are responsible for attending all the meetings that are held in order to:
a. Provide an objective perspective as to which new components to pursue
b. Ensure compliance with standards
c. Communicate decisions through the knowledge repository
d. Provide information if something similar was considered in the past but
was deferred
162. When you began your job as the portfolio manager for your dairy coopera-
tive, your executives suggested it be pilot tested in one business unit and
selected the animal drug residue unit. It was a success, and in two years,
you received a promotion as portfolio management then was implemented
across the cooperative. While in the animal drug residue unit, you collected
data on spreadsheets on components that you analyzed when meetings of
the Oversight Group in the business unit were held. Now your plan is to:
a. Improve exception reporting cycles
b. Acquire an automated PMIS
c. Ensure stakeholders receive targeted information based on the communi-
cations requirements analysis
d. Review dependencies in the portfolio along with stakeholders’ time-
sensitive needs
256 ◾ PfMP® Exam Practice Tests and Study Guide
163. Working for a government agency that performs some vital functions but
one in which none of these functions is considered critical to national secu-
rity or the health and well being of its citizens, as the portfolio manager you
are accustomed to having to ‘do more with less’. Another round of budget
cuts is expected. This means that:
a. Resource limitations are expected as many will be offered options for
early retirement
b. Strategic opportunities will require approval from those in the executive
branch of the government outside of the agency
c. Overhead functions such as the EPMO and staff member continual train-
ing will be eliminated
d. Allocation of funds to different types of initiatives and their contribution
to strategy may require revision
164. Assume you are the portfolio manager for a global Fortune 50 company
specializing in the production of golf balls since golf is so popular espe-
cially with the aging population. The company has other products under
way or planned so it remains the market leader in this area. The Portfolio
Review Board meets monthly, and at each meeting, it reviews the portfolio
in order to:
a. Address impending risks and outstanding issues
b. Consider funding allocations
c. Evaluate if the portfolio’s benets align with objectives
d. Ensure agreement on the overall timeline for components
165. Since robots and small drones are being used more frequently in very dis-
similar ways, your company, rather than implementing new proposals in this
area since it is the market leader in dirigibles, immediately stated component
proposals for new investments are rst to be approved in governance board
meetings. This means as you manage portfolio information that:
a. Communications are built around this policy
b. A focus on strategic program and project data is required
c. Governance board members must be selected carefully to ensure a trans-
parent process
d. Risks and issues require signicant attention
166. When the portfolio strategic plan is prepared, and each time it is updated, it
is prepared by using:
a. Organizational and portfolio strategic assets
b. Organizational strategy and objectives
c. Organizational vision and mission
d. Portfolio benets and business value expected
Practice Test 2 ◾ 257
167. Criteria to ensure alignment to strategic goals is necessary in order to:
a. Ensure that only approved programs and projects are in the portfolio
b. Determine an overall score for each component
c. Ensure a strong link between programs and projects and the strategic plan
d. Indicate if there are gaps within the portfolio
168. Working to manage the value of the portfolio, you worked with stakeholders
in the seven business units of your energy company to estimate various out-
comes considering the success criteria of the portfolio. The Portfolio Review
Board has ve members. One is the CEO of the company, and another mem-
ber is the CFO. The other three members are comprised of the Directors of
the business units and rotate every six months. You found ve of these direc-
tors are risk adverse, and since you report to the CEO, you realize his goals
are to venture into new markets with new technology to increase short- term
prots. Since the CFO also is risk adverse, the Board basically is risk adverse.
You met with the CEO, and he proposed a new approach to select Board
members, and you are to implement it immediately. This means you need to:
a. Update the portfolio management plan
b. Meet with those Board members who will no longer be represented
c. Ask the CEO to meet with affected stakeholders
d. Update the portfolio strategic plan
169. Your organization has a Center of Excellence in project management, which
has evolved over the past eight years to also cover programs and portfolios.
Its success has been noted by others, and it is often selected for benchmark-
ing. It received a PMO of the Year Award for its achievements. In terms of
portfolio management, it:
a. Serves as the oversight committee to approve, defer, or terminate
components
b. Has the responsibility to develop, implement and maintain the prioritiza-
tion model
c. Denes the portfolio processes and procedures
d. Provides a way to share or optimize scarce resources
258 ◾ PfMP® Exam Practice Tests and Study Guide
170. Being a new portfolio manager, assume you have been asked to conduct a
strategic alignment analysis because two of the organization’s strategic goals
now are obsolete because of a merger with a smaller competitor. One step
to follow in conducting such an analysis is to:
a. Use the ‘as is’ and ‘to be’ state and graphically display the components by
application areas
b. Compare each component in the top ten in the portfolio to one another
through a weighted ranking approach
c. Start with the actual value of each component and compare it to the pro-
posed expected value
d. Determine the current allocation of funds to each application area and
evaluate the need for changes based on the merger
Practice Test 2 ◾ 259
Answer Sheet for Practice Test 2
1. a b c d
2. a b c d
3. a b c d
4. a b c d
5. a b c d
6. a b c d
7. a b c d
8. a b c d
9. a b c d
10. a b c d
11. a b c d
12. a b c d
13. a b c d
14. a b c d
15. a b c d
16. a b c d
17. a b c d
18. a b c d
19. a b c d
20. a b c d
21. a b c d
22. a b c d
23. a b c d
24. a b c d
25. a b c d
26. a b c d
27. a b c d
28. a b c d
29. a b c d
30. a b c d
31. a b c d
32. a b c d
33. a b c d
34. a b c d
35. a b c d
36. a b c d
37. a b c d
38. a b c d
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.