194 ◾ PfMP® Exam Practice Tests and Study Guide
120. b. Next year’s budget can be adjusted
In this situation, the reports provide information to support adjustments
to the upcoming budget. Portfolio reports are an output of the Manage
Portfolio Value process.
Portfolio Management Standard, p. 103
Task 9 in the ECO in Performance
121. a. Sets expectations for project team members
Setting expectations for team members is necessary concerning actions
and processes necessary to facilitate critical alignment among people,
ideas, and information.
Portfolio Management Standard, p. 113
Task 4 in the ECO in Communications
122. d. Reg ulatory compliance
Since the telecommunications industry is regulated, regulatory compli-
ance is a key criterion.
Portfolio Management Standard, pp.66–67
Task 4 in the ECO in Governance
123. c. A large number of concurrent programs and projects
Resources tend to be limited in organizations, including funding for
external resources. If a large number of concurrent programs and proj-
ects are under way at the same time, risks can arise if some of the same
resources are required to support them or if there are dependencies
among them that affect deliverables and benets.
Portfolio Management Standard, p. 120
Task 1 in the ECO in Risk Management
124. d. Assist in scheduling adjustments
The software also can help to provide data to resolve resource con-
icts, and the dashboard report is useful to quickly communicate status.
Resource utilization reports are especially helpful.
Kerzner (2011), p. 295
Portfolio Management Standard, p. 86
Task 3 in the ECO in Performance
Practice Test 1 ◾ 195
125. a. Satisfying important information needs of stakeholders
Stakeholders at all levels require information as to why portfolio
management is important and their own roles and responsibilities in
the process.
Portfolio Management Standard, p. 105
Task 2 in the ECO in Communications
126. c. The existing inventory of work should be validated against the updated
strategy
The portfolio strategic plan aligns the portfolio with organizational strat-
egy. To enable this strategic alignment, any pre- existing portfolios or
inventory of work must be validated against strategy updates to ensure
the plan is used to ensure organizational objectives are met.
Portfolio Management Standard, pp.65–66
Task 1 in the ECO in Strategic Alignment
127. b. Status in achieving benets
As sponsors prepare proposals for inclusion in the portfolio, they
emphasize tangible and intangible benets of the component. Portfolio
reporting is described as part of the portfolio performance plan.
Portfolio Management Standard, pp. 87, 111
Task 4 in the ECO in Governance
128. d. Equity protection
The portfolio manager has a contingency amount, or equity protection,
across the portfolio, which is used as a form of insurance if any com-
ponent in the portfolio cannot fund its own contingency for risks. If a
component has difculty and lacks contingency funds, it is then funded
from the equity protection fund. The entire value of the portfolio must
be considered, and not the individual components, meaning if some of
the programs or project fail, the portfolio is still a success if the overall
portfolio provides benets and business value.
Portfolio Management Standard, p. 120
Task 7 in the ECO in Risk Management
196 ◾ PfMP® Exam Practice Tests and Study Guide
129. a. Included in the portfolio roadmap
The roadmap contains a list of components that provides a high- level
strategic direction and information in a chronological fashion for portfo-
lio execution.
Portfolio Management Standard, p. 39
Task 8 in the ECO in Strategic Alignment
130. c. Enable comparison among components
The purpose of a prioritization model is to use it to score and compare
portfolio components to establish the portfolio and evaluate it.
Portfolio Management Standard, pp. 44–45
Task 6 in the ECO in Strategic Alignment
131. a. Employ a resource management process
To best support capacity and capability analysis, a resource manage-
ment tool, technique, or process should be used to enable analysis.
Portfolio Management Standard, p. 90
Task 7 in the ECO in Performance
132. b. Business imperatives
This category ts this situation in that it covers the internal toolkit, IT
compatibility, and upgrades; all of which are needed in this company to
continue with its existing products as well as focusing on new products
requiring technology upgrades.
Portfolio Management Standard, p. 68
Task 4 in the ECO in Strategic Alignment
133. a. Alcohol, tobacco, and sugar soft drink products should no longer be
offered
The portfolio manager’s risk concerns include risks that threaten the link
between organizational strategy and the portfolio. In this situation, the
company has added extensive health care services but has continued to
provide products with known adverse health problems. There is now a
dichotomy between these products and the health care services and is
a risk at the portfolio level concerning overall organizational strategy.
Portfolio Management Standard, p. 122
Task 3 in the ECO in Risk Management
Practice Test 1 ◾ 197
134. a. Work with your business partner in terms of portfolio management
It is appropriate in small organizations to have executives assume all or
some of the portfolio governance responsibilities.
Portfolio Management Standard, p. 26
Task 1 in the ECO in Governance
135. a. Prepare a model of the current conguration and modify it to deter-
mine future capacity requirements
As the results of the model are analyzed, if the results indicate there
is insufcient capacity to meet future requirements, it can be used to
evaluate alternatives to nd the best way to provide sufcient capacity.
Portfolio Management Standard, pp. 48, 74
Task 5 in the ECO in Strategic Alignment
136. c. Portfolio communications strategy
The portfolio communications strategy should be transparent and
should mitigate any risks of lack of communications. Through a trans-
parent approach one can see the priority of his or her work and how it
relates to organizational strategy and objectives.
Portfolio Management Standard, p. 105
Task 2 in the ECO in Communications
137. d. State this requirement in the communication plan
This requirement is an example of a constraint, and it along with any
other organization policies on communications should be in the portfo-
lio communication plan.
Portfolio Management Standard, p. 113
Task 4 in the ECO in Communications
138. c. Provides guidance on stakeholder engagement
The portfolio management plan provides guidance in the extent of
stakeholder engagement required to develop the portfolio risk man-
agement plan. Guidance also is provided concerning the governance
approach, overall portfolio performance, and communications.
Portfolio Management Standard, p. 124
Task 2 in the ECO in Risk Management
198 ◾ PfMP® Exam Practice Tests and Study Guide
139. c. Organizational process assets
Organizational process assets inuence the portfolio’s strategic plan
and provide information to better understand the overall organizational
strategy.
Portfolio Management Standard, p. 44
Task 4 in the ECO in Strategic Alignment
140. a. Identies internal and external dependencies
One key benet of the roadmap is its ability to show dependencies as
decision makers then can determine the effect of adding a component
or terminating one.
Portfolio Management Standard, p. 49
Task 8 in the ECO in Strategic Alignment
141. c. Portfolio management plan
This document is an input to the Manage Portfolio Risks process. It
requires understanding of overall portfolio funding. It also contains
the portfolio risk management plan, or this document is a subsid-
iary plan to it, which describes the time and budget for portfolio
risk management.
Portfolio Management Standard, p. 131
Task 4 in the ECO in Risk Management
142. b. Revise the portfolio management plan
Among other things, this plan includes prioritization along with balanc-
ing the portfolio and managing dependencies.
Portfolio Management Standard, p. 39
Task 4 in the ECO in Governance
143. b. Included in nite capacity planning and reporting
Resource leveling is useful to demonstrate the effect if resources were
not over allocated and to help make decisions on the best ways to pri-
oritize work or to determine the types of resources to acquire.
Portfolio Management Standard, p. 90
Task 7 in the ECO in Performance
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