134 ◾ PfMP® Exam Practice Tests and Study Guide
77. With the introduction of new legislation in your company, anyone now is
entitled to medical services regardless of whether or not they are employed
or have any pre- existing health conditions. Your insurance company’s execu-
tives have been tracking this legislation as it means signicant changes
for your company; many employers who obtained insurance through your
company may go elsewhere for lower costs. Recognizing this legislation
may lead to a loss of revenue, your company decided to merge with another
insurance rm to obtain greater market share. This merger, though, means
some existing projects may not be needed, and the workforce will be
reduced by 20 percent, Such a signicant change will impact how compo-
nents are categorized in your portfolio leading to:
a. The need for a re- constituted oversight group
b. Portfolio rebalancing
c. A requirement to update the portfolio management plan
d. A new portfolio prioritization model
78. Your company has had a portfolio management process in place for ve
years at the enterprise level, in its business units, and even in its complex
programs. This year the company’s Center for Excellence received an award
for its work in this area from PMI
®
. As the Portfolio Manager, you have pre-
dened metrics in place, which are critical because:
a. They show transparency at all levels
b. They provide stakeholders with critical information on the health of the
portfolio
c. They show the link of each initiative to the company’s strategic goals
d. They provide insight into the processes being used
79. Moving from project management to program management and now being
appointed as the rst portfolio manager in your cyber warfare company,
you know you always wondered what happened to the various reports you
had to prepare, and the metrics you had to collect. You are working now to
determine critical metrics for portfolio management and decided to involve
as many people as possible through questionnaires and surveys. You also
held some focus groups. The purpose is to:
a. Ensure the metrics that are collected support the SMART principle
b. Maximize portfolio value
c. Represent the vital few rather than the trivial many
d. Can be gathered with minimal disruption
Practice Test 1 ◾ 135
80. While a variety of prioritization approaches are available and are useful in
portfolio management and many software packages support the various
approaches, it is important to recognize:
a. Resource constraints
b. Mandatory criteria
c. Allocation of funds across categories based on business value
d. Methods to determine which components should receive the highest
priority
81. Assume you are the portfolio manager for your HVAC (Heating, Ventilating,
and Air Conditioning) company, one of the largest in the world. Preparing
for a meeting with the Portfolio Governance Committee, you have been
reviewing the success of components that have been completed as well as
the progress of current portfolio components. In many cases people who
only purchased heating units in the northern part of the country, and people
who purchased only air conditioners in the south, now are buying state- of-
the art products to easily switch as needed. You found the risks of climate
change led to the need for these new energy efcient products and did so by:
a. Sensitivity analysis
b. Ranking and scoring techniques
c. Investment choices
d. Trend analysis
82. Stakeholders in your company are skeptical of the changes that will occur
as portfolio management is being implemented. While some are supportive,
most are not as they believe their work may be terminated. As the portfolio
manager, you prepared a list of stakeholders, which is included in the:
a. Portfolio strategic plan
b. Portfolio charter
c. Portfolio performance plan
d. Portfolio management plan
136 ◾ PfMP® Exam Practice Tests and Study Guide
83. By setting up portfolio categories and using a pair- wise comparison
approach to rank components, as the portfolio manager, you feel that you
are nally setting up and getting people to follow standard portfolio prac-
tices. Since portfolio management still is relatively new, progress is under
way. As some components are added, and others are not continued, you are
making sure if a component is terminated that it does not have dependen-
cies with others in the portfolio. You need to then:
a. Revise the ranking model
b. Inform all stakeholders
c. Update the roadmap
d. Upgrade to a more detailed scoring model that includes dependencies
with components
84. The portfolio management process ensures the components are aligned to
goals. However, it is driven by:
a. Viability
b. Value and benets
c. Organizational strategy and objectives
d. Interdependencies and resource constraints
85. Assume you recently took a seminar on portfolio management, and after
you returned, you made the business case for it to the President of your con-
sulting rm, recognizing the need to improve the capture ratio of responses
to Requests for Proposals. You have been asked to implement portfolio man-
agement and recognize that you need to develop orientation and training
sessions on it so everyone in the rm realizes why it is essential to pursue.
To do so, the best approach is to:
a. Have the training vendor from the seminar you attended submit a pro-
posal to develop several training approaches
b. Develop the courses yourself working with the vendor’s materials plus
other books and standards on portfolio management
c. Work with the human resources department and have an instructional
design person develop the courses
d. Ask the PMO to develop and deliver the courses
Practice Test 1 ◾ 137
86. Assume your food additive company performed a capacity analysis and
found some resources had not maintained their skill sets and basically were
not as productive as others in the company. Rather than have a massive
reorganization, instead the executives decided to eliminate the jobs of these
staff members, many of whom had been in the company for more than
20years. Morale among the existing staff is low as people fear there will be
more layoffs. Plus the government issued a new regulation that requires an
additional Food and Drug Administration quality check before a new addi-
tive can be submitted for regulatory approval. One member of the executive
team wants to acquire another company to enhance market share, and the
existing plants in the Asia Pacic region require infrastructure upgrades.
Given resource shortages, only one component can be selected to be added
to the portfolio. The Board should select:
a. Component A—to enhance employee morale
b. Component B—to add staff to work with the FDA trained in quality
management
c. Component C—to acquire the competitor to increase market share
d. Component D—to upgrade the AP’s plant infrastructure
87. In your diversied chicken products company, your portfolio of components
in progress consists of approximately 175 programs, projects, and other
work. Generally, at each Portfolio Review Board meeting, about 35 new
proposals are reviewed to see if they should be part of the portfolio. As the
portfolio manager, you have set up categories for these components. They
are useful to facilitate portfolio optimization because:
a. They use ltering to eliminate certain components from consideration
b. They help identify the components that meet requirements for
consideration
c. They serve as key evaluation criteria
d. They address organizational strategy and objectives
138 ◾ PfMP® Exam Practice Tests and Study Guide
88. Recognizing that different components can have different types of risks, you
decide to see how each risk affects the components. For example, assume
you have identied an execution as how change is managed and determine
this risk affects three of the top ve risks in your portfolio. You also have
identied an internal risk, in terms of whether the component will promote
the organization’s integrity, which affects two components. Each component
then has some other types of risks that affect it. From such an analysis you
can see:
a. Gaps in the portfolio
b. Common causes
c. Overall portfolio risk impact
d. Rebalancing needs
89. While the Governance Board has a variety of signicant roles in portfolio
management, especially in terms of the recommendations it makes, these
recommendations are extremely complex when they involve:
a. Interdependencies between components
b. Resolution of issues and risks
c. Portfolio balancing and prioritization
d. Resource reallocation
90. Assume the organization’s strategy has undergone a signicant change, and
as a result the mix of components in the portfolio also will change. As the
portfolio manager, you need to update your charter in order to reect:
a. The new ‘to be’ vision
b. Interdependencies between the new components
c. Risk tolerances
d. Key stakeholders
91. Working as a portfolio manager in the Water Resources Department of the
U.S. Geological Survey, you are following a scorecard approach to report
progress to your executives on the components in your portfolio. You submit
the scorecards monthly, and based on their results, your executives decide
if a Portfolio Review Board meeting should be held. Your emphasis in these
reports is to:
a. Chart progress toward strategic goals and objectives
b. Measure performance against targets and thresholds
c. Display raw data in a visual graph
d. Display data using a trafc light approach
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.