184 ◾ PfMP® Exam Practice Tests and Study Guide
71. d. Are recommended for consideration by the Portfolio Review Board
Portfolio reports are an output of the Manage Portfolio Value process.
In this situation, these cost savings and the actions recommended then
require consideration from governance.
Portfolio Management Standard, p. 104
Task 9 in the ECO in Performance
72. d. Goals
Organizations establish goals to move to their desired vision. Goals
have objectives that then are measured, and strategies are developed to
achieve goals.
Portfolio Management Standard, p. 7
Task 8 in the ECO in Strategic Alignment
73. a. Portfolio strategic plan
The purpose of the portfolio strategic plan in this situation is to provide
guidance as it describes the portfolio vision and objectives, benets, key
risks, assumptions, and constraints.
Portfolio Management Standard, p. 48
Task 1 in the ECO in Performance
74. c. Is used to authorize the portfolio
Governance decision reports are an example of portfolio reports, an
input to the Authorize Portfolio process. These reports authorize com-
ponents and provide detailed information on why the component
was selected.
Portfolio Management Standard, p. 79
Task 5 in the ECO in Governance
75. a. Visualize components
Bubble diagram graphs are an example of a graphical analytical method
used as a tool and technique in Optimize Portfolio. The bubbles repre-
sent components, both existing and proposed, according to predened
balancing criteria.
Milosevic, pp.74–75
Portfolio Management Standard, pp.75–76
Task 7 in the ECO in Performance
Practice Test 1 ◾ 185
76. c. Validate data that now are in the reports
These meetings are an example of an elicitation technique, used in the
Manage Portfolio Information process. They serve to validate and better
understand the data in component reports to ensure the data that are
provided are useful to stakeholders.
Portfolio Management Standard, p. 116
Task 5 in the ECO in Communications
77. b. Portfolio rebalancing
Signicant changes in strategy will impact component categorization
in the portfolio or prioritization and require that the portfolio be rebal-
anced as a result.
Portfolio Management Standard, p. 63
Task 7 in the ECO in Strategic Alignment
78. d. They provide insight into the processes being used
Metrics are useful to drive accountability for performance improvement,
to provide insight into current processes, and to determine any needed
changes to these processes.
Portfolio Management Standard, p. 25
Task 3 in the ECO in Performance
79. b. Maximize portfolio value
Metrics are in the portfolio performance management plan. The objec-
tives are to collect the metrics that best ensure resource performance
and maximize portfolio value.
Portfolio Management Standard, pp. 89, 104
Task 4 in the ECO in Governance
80. b. Mandatory criteria
Mandatory criteria include regulatory or operational requirements,
which must be met. These components then are in the portfolio regard-
less of the prioritization approach that is used.
Portfolio Management Standard, p. 70
Task 5 in the ECO in Strategic Alignment
186 ◾ PfMP® Exam Practice Tests and Study Guide
81. d. Trend analysis
Trend analysis is an example of a tool and technique in the Manage
Portfolio Risk process. By reviewing trends based on risks as in this
situation it can lead to different responses and actions to take to miti-
gate the risks.
Portfolio Management Standard, p. 132
Task 5 in the ECO in Risk Management
82. b. Portfolio charter
A list of stakeholders is included in the charter to best ensure the port-
folio will deliver business value for them by formally identifying them.
Portfolio Management Standard, p. 39
Task 1 in the ECO in Performance
83. c. Update the roadmap
As the portfolio process is dened, if components change or if depen-
dencies change, the roadmap requires updates to it.
Portfolio Management Standard, p. 70
Task 5 in the ECO in Governance
84. c. Organizational strategy and objectives
Before the portfolio process begins, it is driven by the organizational
strategy and objectives that are set by the executives.
Portfolio Management Standard, p. 21
Task 1 in the ECO in Strategic Alignment
85. d. Ask the PMO to develop and deliver the courses
One area in which the PMO can assist in portfolio management is to
develop and conduct training in it and mentor people in the portfolio
management skills, tools, and techniques.
Portfolio Management Standard, p. 18
Task 5 in the ECO in Communications
Practice Test 1 ◾ 187
86. b. Component B—To add staff to work with the FDA trained to work in
quality management
In considering resource scenario analysis, this company requires FDA
approval for its products. Its best option is to ensure the time- to- market
window is streamlined as much as possible so additional resources
should be allocated to work with the FDA.
Portfolio Management Standard, p. 95
Task 7 in the ECO in Performance
87. d. They address organizational strategy and objectives
Assigning components to categories helps compare those that address
similar organizational needs and strategic objectives. In this way, they
facilitate optimization to ensure selected and managed components
address organizational strategy and objectives.
Portfolio Management Standard, p. 68
Task 4 in the ECO in Strategic Alignment
88. b. Common causes
This type of analysis is portrayed in a risk component chart, a qualita-
tive risk tool and technique used in the Manage Portfolio Risks pro-
cess, and is helpful to see if there are common causes affecting various
portfolio components thereby facilitating decision making in terms of
next steps
Portfolio Management Standard, pp.133, 135
Task 5 in the ECO in Risk Management
89. d. Resource reallocation
Recommendations by the Governance Board may include new compo-
nents, changing or terminating existing components, and reallocating
resources among components. It is in resource reallocation where the
recommendations are complex especially if organizational constraints
are in place.
Portfolio Management Standard, p. 19
Task 5 in the ECO in Governance
188 ◾ PfMP® Exam Practice Tests and Study Guide
90. d. Key stakeholders
The charter is updated to reect the new strategic objectives and key or
major stakeholders and their communication requirements.
Portfolio Management Standard, p. 55
Task 7 in the ECO in Strategic Alignment
91. a. Chart progress toward achieving strategic goals and objectives
Scorecards and dashboards often are used interchangeably. Scorecards
are visual displays used as strategically- oriented performance metrics to
chart progress toward achieving strategic goals and objectives by com-
paring progress against targets and thresholds.
Kerzner (2011), p. 201
Portfolio Management Standard, p. 37
Task 3 in the ECO in Performance
92. c. Maximize return considering the city’s risk tolerance
Each organization has a pre- dened risk prole and tolerance. In opti-
mizing the portfolio and allocating resources according to strategy, this
risk prole or tolerance must be considered to maintain portfolio return.
Portfolio Management Standard, p. 71
Task 7 in the ECO in Performance
93. c. The governance processes affect information requirements
It is necessary to know the Governance Board members and the spe-
cic governance processes to be supported by regular communications.
Portfolio Management Standard, p. 110
Task 3 in the ECO in Communications
94. a. Set forth in the portfolio strategic plan a prioritization model
Prioritization analysis is a tool and technique to use in developing the
portfolio strategic plan. The prioritization model to be used then is
described as part of this plan.
Portfolio Management Standard, p. 46
Task 6 in the ECO in Strategic Alignment
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