32 ◾ PfMP® Exam Practice Tests and Study Guide
3. Fortunately, your organization recognized that for portfolio management to
be effective, it needed to be managed by someone who was independent of
the PMO. It also established a Portfolio Oversight Group with the CEO as its
Chair and the heads of the Business Units as its members. While the group
has numerous functions, not to be overlooked is making governance deci-
sions in terms of:
a. Stage gates
b. Regulatory compliance
c. Risks and issues
d. Stakeholder management
4. One of the reasons your CEO is interested in setting up portfolio manage-
ment in your consulting company is that he came from a background in
new product development in which gate reviews were a common prac-
tice. However, portfolio management is a new concept in your consulting
company as its work is received through competitive bids on proposals or
through customer referrals. You also worked in portfolio management with
the CEO at the other organization so were hired as the portfolio manager.
You are establishing specic decision- making rights and authorities and roles
and responsibilities that are needed to manage progress based on:
a. Benet realization
b. Key performance indicators
c. Critical success factors
d. Portfolio risk
5. The Chief Financial Ofcer is a key stakeholder and is a member of your
company’s Portfolio Review Board. He ensures before each Board meeting
that tangible, accurate, and up- to- date nancial information is available as
portfolio selection and prioritization decisions are made The purpose for his
active involvement is to:
a. Compare project spending with the allocated budget
b. Ensure the projected nancial benets are quantiable and delivered
c. Provide value- for money analyses
d. Determine if the proposed component will provide sufcient benets to
then acquire external resources to perform it