Practice Test 2 ◾ 265
10. c. Heat map
A heat map is a form of qualitative analysis used in the Monitor and
Control Risks process. It serves as a point in time comparison of
portfolio risks and looks at risks from the point of view only of expo-
sure value.
Portfolio Management Standard, p. 133
Task 5 in the ECO in Risk Management
11. c. Components
Even though the acquisition was one in which similar products and ser-
vices were offered, a change in the component mix will occur as some
components will change if those of the acquiring company have differ-
ent features that may be positive and should be added to the portfolio.
Portfolio Management Standard, p. 55
Task 7 in the ECO in Strategic Alignment
12. a. The high- level timelines for portfolio delivery
The charter formally authorizes the portfolio. By including high- level
timelines for portfolio delivery in it, with stakeholder signoffs, it pro-
vides common agreement to meet stakeholder expectations.
Portfolio Management Standard, p. 39
Task 1 in the ECO in Performance
13. c. Resource histograms
Resource histograms are useful to graphically display over or under
allocation of resources across the portfolio.
Portfolio Management Standard, p. 118
Task 5 in the ECO in Communications
14. b. Is viewed as a positive risk
This situation shows the need to improve product quality, and the com-
pany has invested in quality management, a positive risk, to be more
effective than having to perform later corrective actions because of poor
quality, a negative risk.
Portfolio Management Standard, p. 120
Task 1 in the ECO in Risk Management
266 ◾ PfMP® Exam Practice Tests and Study Guide
15. d. Portfolio roadmap
The roadmap is useful as it summarizes strategic objectives, describes
how the strategy may evolve, and summarizes milestones, dependen-
cies, and risks.
Portfolio Management Standard, p. 66
Task 8 in the ECO in Strategic Alignment
16. b. Minimize portfolio risks
Portfolio reports are an input to the Provide Portfolio Oversight process.
They are useful to evaluate components and decide actions to take to
minimize risks and maximize portfolio benets.
Portfolio Management Standard, p. 83
Task 1 in the ECO in Governance
17. a. Ensure all components are comparable
Key descriptors are established to provide a way to ensure all compo-
nents are comparable and provide an approach to lter or eliminate any
components since there are associated acceptance levels.
Portfolio Management Standard, p. 67
Task 2 in the ECO in Governance
18. b. Involve stakeholders
All relevant stakeholders require involvement and buy in in developing
and executing the portfolio’s components to best increase overall port-
folio success.
PMI (2013) Managing Change in Organizations, p. 45
Task 7 in the ECO in Strategic Alignment
19. c. Provide information on progress and results
The portfolio manager recognizes how the portfolio relates to the orga-
nization’s strategy and plays a key role in implementing the strategy by
monitoring the initiation of initiatives in the plan and communicating
progress and results.
Portfolio Management Standard, p. 15
Task 3 in the ECO in Communications Management
Practice Test 2 ◾ 267
20. a. Recognizing portfolio dynamics
In risk evaluation, the portfolio manager considers portfolio analysis
including scal constraints, cost- benet analysis, windows of opportu-
nity, portfolio component constraints, and stakeholder dynamics.
Portfolio Management Standard, p. 16
Task 1 in the ECO in Risk Management
21. b. Have the portfolio roadmap available
The roadmap, used as an input to optimize portfolio, shows the strategy
for the portfolio’s “to- be” vision to guide the optimization process.
Portfolio Management Standard, p. 73
Task 1 in the ECO in Performance
22. a. Reect on the investments made or planned by the organization
There are a number of activities involved in portfolio management, but
the emphasis in performing them is to reect rst on the investments
that the organization has made or plans to make.
Portfolio Management Standard, p. 3
Task 3 in the ECO in Strategic Alignment
23. a. Component A
Component A will drop features if necessary in a trade- off situation. In
the Optimize Portfolio process, market analysis is a tool and technique.
The situation shows that this is a schedule-driven company and is most
interested in time to market. This component is most aligned with the
company strategy.
Milosevic et al., pp.75–76
Portfolio Management Standard, p. 75
Task 6 in the ECO in Performance
24. c. The portfolio management ofce is ideal to develop and collect the new
metrics
Change is constant, and therefore, the portfolio management ofce is
ideal to develop new metrics as required and discontinue collecting oth-
ers if they are not adding value.
Portfolio Management Standard, p. 89
Task 2 in the ECO in Performance
268 ◾ PfMP® Exam Practice Tests and Study Guide
25. b. Strategic objectives must be optimized
One item in the portfolio strategic plan is to ensure that strategic objec-
tives can be optimized with available resources and risks. The portfolio
should be validated against organizational strategy for consistency with
evolving organizational mission, goals, or objectives and is the purpose
of the portfolio strategic plan.
Portfolio Management Standard, p. 39
Task 1 in the ECO in Strategic Alignment
26. a. Stakeholder risk tolerances
In addition in this plan concerning risks, it may contain roles and
responsibilities, budgets, a schedule, risk categories, and denitions of
probability and impact.
Portfolio Management Standard, p. 124
Task 2 in the ECO in Risk Management
27. a. Provide information to those in portfolio component support functions
Such information is provided as well to stakeholders as the portfolio
is updated, but those in support functions such as human resources,
nance, the PMO, and procurement should not be overlooked.
Portfolio Management Standard, p. 80
Task 5 in the ECO in Governance
28. a. Information in a report used to authorize the portfolio
Before the portfolio is authorized, as an input, various types of portfolio
reports are reviewed and analyzed; this is an example of the type of
data that could be part of a nancial report.
Portfolio Management Standard, p. 79
Task 1 in the ECO in Performance
29. b. Describe the goals and objectives
By starting with the plan’s goals and objectives, the recipients will have
a common understanding as to why the plan is important and how it
can best meet their requirements.
Portfolio Management Standard, p. 113
Task 4 in the ECO in Communications
Practice Test 2 ◾ 269
30. a. An interdependency analysis
The interdependency analysis is a tool and technique to aid in develop-
ment of the roadmap. It is a variation of the interrelationship diagraph
to show the relationship of the various dependencies among portfolio
components.
Portfolio Management Standard, p. 51
Task 8 in the ECO in Strategic Alignment
31. c. Market- payoff variability
This investment choice approach focuses on pricing and sales forecasts.
It depends on a number of marketing factors as it recognizes the impact
of changing one or more factors, which may affect the portfolio itself or
the portfolio’s strategy.
Portfolio Management Standard, p. 127
Task 2 in the ECO in Risk Management
32. c. Lead to the potential change of the Department’s strategic direction
Portfolio performance is monitored against organizational strategy and
objectives with performance feedback used to provide input to the
potential change of the organization’s strategic direction.
Portfolio Management Standard, p. 9
Task 9 in the ECO in Performance
33. a. Organizational communication strategy
The strategic plan species the organization’s tolerance for risks, com-
munication strategy at the organizational level, and the organization’s
performance strategy.
Portfolio Management Standard, p. 60
Task 1 in the ECO in Strategic Alignment
34. b. Provide a copy of the portfolio management plan
This plan also describes the portfolio management approach and how
it is dened, organized optimized, and controlled; it is an input to the
Provide Portfolio Oversight process.
Portfolio Management Standard, p. 83
Task 4 in the ECO in Governance
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