230 ◾ PfMP® Exam Practice Tests and Study Guide
80. As you work to manage supply and demand of resources in the portfolio,
you need to determine whether there are any specic guidelines to follow
especially if there are delays because of constraints on resources. You have
found resources are often overbooked, leading to delays in completing your
IT projects on time, and the company’s reputation is suffering. These guide-
lines are contained in the:
a. Organizational process assets
b. Portfolio process assets
c. Portfolio management plan
d. Portfolio performance management plan
81. Your pharmaceutical company is noted for its best practices in project man-
agement. It also has embraced program management for greater overall ben-
ets to its stakeholders and has had a dened portfolio management process
in place for ve years. As the company wants to continuously improve,
recently it used an external consultant to perform an OPM3 assessment. The
company scored 80% in terms of best practices in place in portfolio manage-
ment. The consultant was especially impressed with its portfolio manage-
ment information system because it:
a. Also linked to a knowledge management system
b. Had sophisticated security procedures regarding access rights to key data
c. Linked to the program and project management systems as an integrated
system
d. Included real- time dashboards
Practice Test 2 ◾ 231
82. Your low end department store has entered the grocery business in many of
its locations. It led to an increase in market share and a competitive advan-
tage. Strategic organizational goals are to expand add stores to handle grocer-
ies, expand to other states, attract upscale designers to add their products,
maintain its brand recognition of a clean and safe environment for shopping
with friendly staff, and also to add bistros. However two weeks ago, there
was a major security breach affecting customers in the stores throughout your
country, and millions of people ended up with security fraud. On Friday, the
Portfolio Review Board will review proposals for new components as well as
progress with the existing components. But, resources already are stretched
too thin, meaning some components will need to be terminated, or only one
new component can be added. The Board should elect to:
a. Add a component to restore brand image
b. Terminate components in ve states in your country to add groceries and
add components for bistros to those stores now offering groceries
c. Add a component to pilot test enhancing the company’s image by attract-
ing upscale designer clothes
d. Add a component to redesign existing stores so their appearance is fur-
ther enhanced
83. The portfolio risk management plan is used in many ways. Among other
things, it updates:
a. Portfolio funding
b. Risk checklists
c. Criteria to see if risks are identied consistently with the organization’s
risk strategy
d. The various identied risk categories and any sub- categories
84. Assume your dairy cooperative, which spans 15 states in your country, has
been focusing on improved project management and has an Enterprise
Project Management Ofce. It is now moving into portfolio management and
since you were a senior staff member in the PMO, you have been asked by
the CEO to lead the portfolio management process planning and implemen-
tation. You are a team of one person at this time, and the executive team
has asked you to rst provide program and project information to them. To
facilitate this request, you decide to:
a. Send out a survey to the program and project managers
b. Ask the PMO to gather this information for you
c. Interview the program and project managers and use the interviews to
explain why the cooperative is moving into portfolio management
d. Ask each member of the executive team to provide a point of contact for
you in his or her business unit or operations function and gather the data
through this person
232 ◾ PfMP® Exam Practice Tests and Study Guide
85. For purposes of continuous improvement, each year you review the criteria
you are using to select and produce a categorized list of components in
priority order. Your goal is to ensure the criteria you use are quantiable,
and in your web system development company, it is especially important
to consider:
a. Internal and external risks
b. Technology capabilities and capacities
c. Internal and external dependencies
d. Legal and regulatory compliance
86. Assume your organization is undergoing a major transformational change.
Some people have said it is similar in scope to the mid 1990s, when IBM
changed from a focus on hardware to one focused on providing services
and being project based. You are the portfolio manager and are leading this
major transformation initiative. Many key stakeholders do not believe the
people in the organization can accept the change and will resist it tremen-
dously. You decide to:
a. Hold a meeting through Web Ex to explain why the change is necessary
b. Send out a message to every member of the organization so there is
consistency
c. Determine whether there are any needs that are required to best imple-
ment the change
d. Meet with the key stakeholders and then set up some focus groups to
gauge attitudes about the change
87. Your Portfolio Management Ofce prepares reports on the status of the com-
ponents in the portfolio. These reports are helpful in terms of monitoring
the portfolio especially in terms of supply and demand for resources. One
report that often is overlooked is the:
a. Capability report
b. Benet realization report
c. Financial report
d. Productivity report
Practice Test 2 ◾ 233
88. Assume you have a governance model as part of your portfolio management
plan. Over time, as portfolio management has matured in your organization
and has been embraced by stakeholders at various levels, it is now a routine
way of working. One reason it is effective is how portfolio governance is
dened in that it prescribes:
a. Ways to respond best to manage stakeholder expectations
b. The overall strategic goals of the portfolio
c. Internal resource allocation
d. Risk response planning
89. Assume you are establishing the type and frequency of reports to be pro-
vided to various stakeholder groups as part of portfolio planning. You want
to make sure the program and project managers, their team members, and
any subject matter experts are not overlooked in the process. You decided
they would have a specic interest in weekly information on:
a. Resource allocation
b. Prioritization
c. Risks and issues involving the portfolio
d. Governance meetings and decisions
90. Risks seem to be occurring that were not considered as part of your cereal
company’s portfolio. Many products have been recalled, which never hap-
pened in the past. You are working to manage risks to the portfolio and nd
useful information to help you in the:
a. Risk breakdown structure
b. Risk tolerance proles
c. Portfolio performance reports
d. Portfolio investment choices
91. Assume you are the portfolio manager for your ball point pen company. The
executives held their monthly meeting to review and optimize the portfolio
and made a decision to add a new product line that requires new technol-
ogy. These pens will be expensive, a pleasure to use, and will last forever.
Another product line of pens in which the logo of corporations purchasing
the pens, a product for which your company is well known, was terminated.
Portfolio reports require updates especially in terms of:
a. Internal and external environmental factors
b. Organizational process assets
c. Risk ratings
d. Organizational areas
234 ◾ PfMP® Exam Practice Tests and Study Guide
92. The portfolio charter includes many signicant items. One that may be over-
looked is:
a. Issues
b. Vision
c. Stakeholder expectations
d. Communication methods
93. Your health care company has been characterized by many as a tribal cul-
ture, as people work in various functional departments based on their
scientic or medical background. However, you have a new CEO who previ-
ously worked in the defense industry and decided portfolio management
was needed in your company for effective resource allocation. You were
appointed as the Portfolio Manager and now have one person to help you.
Your rst step is to:
a. Prepare a one- page vision statement for the CEO to issue to the organiza-
tion as to why portfolio management is necessary
b. Assess the current state of portfolio management
c. Prepare a strategic plan for portfolio management
d. Set up a Portfolio Review Board
94. Assume that you have been managing a portfolio in your publishing com-
pany for books on project management. Sales are not as high in the past
two years even though you have e- books and PDF versions available and
an aggressive marketing campaign. You realize there are so many project
management books available from different publishers or from self publish-
ing that this portfolio requires changes to continue to be viable. You must
report the progress of this portfolio in two weeks to signicant stakeholders
in your organization and realize the best approach is to:
a. Include an assessment of the probability of this portfolio to achieve its
benets
b. Submit a proposal for additions to it in the areas of portfolio and pro-
gram management books
c. Recognize resources are limited and recommend reassigning some key
SMEs to other portfolios to better handle demand
d. Continue to ensure your own work on this portfolio is done by applying
needed processes so your work is done effectively and efciently
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