Practice Test 1 ◾ 179
48. c. Deliver the maximum value aligned with strategic objectives
Portfolio value is the aggregate value of the components in the portfo-
lio. It also ensures the maximum value considers the organization’s risk
tolerance.
Portfolio Management Standard, p. 96
Task 8 in the ECO in Performance
49. d. Values
Values are used in decision making and are critical to portfolio man-
agement. Organizational process assets are an input to the Manage
Portfolio Risks process.
Portfolio Management Standard, p. 132
Task 4 in the ECO in Risk Management
50. d. Changes are required as to how funds are allocated
Updates to portfolio process assets are an output of the Authorize
Portfolio process; this situation shows there is a need to change how
funds can be transferred among components.
Portfolio Management Standard, p. 80
Task 3 in the ECO in Governance
51. b. The probability of achieving portfolio objectives
Different organizations are willing to assume different levels of risk.
A risk adverse organization, as described in this situation, requires a
higher level of investment than one that is more risk tolerant.
Portfolio Management Standard, pp.127–128
Task 2 in the ECO in Risk Management
52. c. Serve as the starting point for the portfolio
An inventory of the work in progress is needed as it comprises the port-
folio; it is also an input to the development of the portfolio strategic plan.
Portfolio Management Standard, p. 43
Task 4 in the ECO in Strategic Alignment
180 ◾ PfMP® Exam Practice Tests and Study Guide
53. b. Goal achievement
Performance reports often focus on variances and goal achievement.
These portfolio reports are an input to the Manage Portfolio Information
process.
Portfolio Management Standard, p. 116
Task 5 in the ECO in Communications
54. b. Portfolio manager
The portfolio manager receives information from the component man-
agers and provides it to the Portfolio Review Board. He or she also pro-
vides information from the Review Board to the component managers
and other stakeholders especially in terms of how the portfolio compo-
nents are aligned with the organization’s strategic goals, on progress,
changes, and impact on components.
Portfolio Management Standard, pp.14–15
Task 3 in the ECO in Communications Management
55. c. Managerial value
If an organization is to enter into a consortium, for it to be benecial,
the member rms must have similar managerial values in order that it is
viewed as a single entity to others.
Portfolio Management Standard, p. 103
Task 9 in the ECO in Performance
56. a. Market analysis
Market analysis is a tool and technique in the Optimize Portfolio pro-
cess. It is necessary to understand end- user expectations as this knowl-
edge is then used to help determine whether the component should
be in the portfolio. It provides information, such as market size, market
segmentation, and sales potential that will increase the probability of
the component’s success.
Milosevic et al, p. 368
Portfolio Management Standard, p. 75
Task 7 in the ECO in Performance
Practice Test 1 ◾ 181
57. b. The organization lacks a dened strategy
The portfolio must be aligned to organizational strategy and if not,
organizational leaders need to question why the work is being done. It
represents the intent, direction, and progress of the organization.
Portfolio Management Standard, p. 3
Task 1 in the ECO in Strategic Alignment
58. a. Collaboration techniques
In this approach, the plan has the benet of polling input from the
team as a consensus or majority vote. These votes can be obtained
electronically and may be anonymous.
Portfolio Management Standard, p. 61
Task 4 in the ECO in Governance
59. b. Extensive training will be needed after the program is complete, and an
infrastructure does not exist to support the ERP system
In this situation, support will be needed from IT, and the portfolio man-
ager is responsible for considering these requirements and ensuring the
infrastructure and training needs can be met for portfolio components.
Portfolio Management Standard, pp.13–14
Task 7 in the ECO in Performance
60. a. Dene the assurance levels of each risk and its performance measures
As part of the tools and techniques in the Develop Risk Management
process and as an activity in conjunction with probability and impact
analysis, such condence limits should be documented.
Portfolio Management Standard, p. 127
Task 2 in the ECO in Risk Management
61. c. Roadmap
The roadmap is used in the development of the portfolio management
plan. In this example, since it shows the various components and their
dependencies in a chronological manner, it then leads to different man-
agement approaches to consider.
Portfolio Management Standard, p. 60
Task 8 in the ECO in Strategic Alignment
182 ◾ PfMP® Exam Practice Tests and Study Guide
62. d. Performance
Drawing from other portfolio management processes such as perfor-
mance and risk can help in the development of the communications
management plan.
Portfolio Management Standard, p. 107
Task 2 in the ECO in Communications
63. c. The portfolio roadmap
The roadmap presents a high- level timeline of the components in the
portfolio and provides an integrated view; this enables it to be a useful
tool for communications.
Portfolio Management Standard, pp.82–83
Task 5 in the ECO in Governance
64. d. Review portfolio goals
In preparing the portfolio performance plan, the rst step is to review
the portfolio goals in the portfolio strategic plan and the objectives to
reach them.
Portfolio Management Standard, p. 87
Task 1 in the ECO in Strategic Alignment
65. a. Execution risk
An execution risk refers to the ability to manage change and includes
how change is managed in performing components. It includes interac-
tions and interdependencies between risks in components in process or
under development.
Portfolio Management Standard, p. 123
Task 3 in the ECO in Risk Management
66. a. A master schedule of resource allocation is needed
An inventory of portfolio resources and capabilities is needed to plan
the consolidated demand to support new and existing components.
Portfolio Management Standard, p. 92
Task 7 in the ECO in Performance
Practice Test 1 ◾ 183
67. b. Portfolio charter
Among other things, the portfolio charter lists the key portfolio stake-
holders and sets forth portfolio management roles and responsibilities.
Portfolio Management Standard, p. 49
Task 1 in the ECO in Governance
68. a. Ensure such allocations are reected in the portfolio’s strategic plan
Allocation of funds and resources to different types of initiatives and
how they contribute to the organization’s objectives are included in the
portfolio strategic plan to aid the decision makers especially in compar-
ing new and existing components with each other.
Portfolio Management Standard, p. 39
Task 6 in the ECO in Strategic Alignment
69. a. Required resources and available resources
In this approach, based originally on concepts by Cooper, Edgett, and
Klienschmidt, the bubble diagram is helpful for balancing decisions. It
can be set up with axes in which criteria are scored, and the portfolio
components are shown in four quadrants. These charts are easy to use
and can offer an unbiased view, but many different ones tend to be
needed to show the various prioritization criteria.
Milosevic, pp.74–83
Portfolio Management Standard, p. 96
Task 3 in the ECO in Performance
70. a. Review lessons learned
Lessons learned are an organizational process asset and an input to the
Develop Portfolio Risk Management Plan process. Since in this example,
the organization focuses on knowledge management, lessons learned
should be available and easy to access.
Portfolio Management Standard, p. 125
Task 2 in the ECO in Risk Management
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