240 ◾ PfMP® Exam Practice Tests and Study Guide
112. As you began to determine the information needs of your stakeholders
as part of preparing the portfolio communications management plan, you
began with sponsors and governance board members. As you talked with
them, you then learned about others who were inuential in portfolio man-
agement and gathered additional information. This means:
a. An increasingly large number of stakeholders want to be involved in the
process
b. Managing stakeholder expectations will consume the majority of your job
c. You need to update the portfolio management plan
d. You need to update the portfolio strategic plan
113. Having worked for eight different agencies over your government career,
you know change is constant. Some programs you worked on at the time
seemed as if they would last forever, but then some type of strategic change
occurred, and they were terminated. In one government agency, where
you were the portfolio manager, the government decided to make it one
that was quasi- governmental, meaning some funding would be provided
by the government, but the agency would need to nd additional funding
from other sources or reduce the components in the portfolio dramatically.
This meant:
a. Continual review and approval by stakeholders rather than only at stage
gates
b. Consistent communication to all stakeholder groups
c. A separate plan to address compliance requirements with this new
legislation
d. A dened change control structure
114. Each organization is unique, and the same is true in how portfolio man-
agement is practiced. However, assume there is a strategic change to an
organization that requires regulatory approval before its products can be
commercialized. This new change now requires yet another audit before the
product can be generally recognized as safe. Passing this new audit will add
time to each schedule as it is unsure how quickly they can be done. This
is a major strategic change, which affects much of the work under way, and
shows that:
a. It is necessary to work closely with the strategic planning staff as the
portfolio manager
b. The portfolio communications and risk plans also require updates
c. Buffers need to be added to each program and project schedule because
of these audits
d. The prioritization criteria require change
Practice Test 2 ◾ 241
115. A number of different portfolio risks affect executives, functional managers,
the portfolio manager, and program and project managers. One example is:
a. Information about portfolio components
b. Organizational integrity
c. Impact on the organization’s strategy and objectives
d. Quality of data about the portfolio
116. As the portfolio manager, you recognize the next meeting of the Portfolio
Oversight Group will be contentious as regulatory mandates have led to
the need for new components plus there are proposals for other compo-
nents that may lead to new breakthroughs for this pharmaceutical company.
However, you also know there are resource shortfalls especially among the
scientic and engineering staff. To support the case to acquire additional
resources, you decided to track over time the impact of optimization deci-
sions on resource capacity. This means you:
a. Used sensitivity analysis
b. Performed resource leveling
c. Prepared a detailed forecast to show resource supply and demand
d. Assessed resource bottlenecks
117. As you work on a detailed portfolio performance plan to complement the
other documents that are necessary to implement portfolio management ef-
ciently in your organization, you found the portfolio management plan to be
useful as it:
a. Includes information on organizational culture
b. Provides resource work calendar data
c. States stakeholder expectations and requirements
d. Includes nancial- related policies
118. As the portfolio manager, you and your team provide monthly status reports
on the overall health of the portfolio to internal stakeholders and shorter
reports to key external stakeholders that lack condential data. As you pre-
pare these reports a best practice to follow is to:
a. Set up a series of reports based on your stakeholder classication
b. Filter each report since there are more than 1,000 components for an
overall summary
c. Have a single format for each component
d. Consolidate the reports that are submitted
242 ◾ PfMP® Exam Practice Tests and Study Guide
119. Assume you have determined the needed structure for your portfolio, and
the proposed areas and categories of work have been agreed upon by
the members of the Portfolio Review Board. You now need to review and
update the portfolio strategic plan as a result of this work. Not to be over-
looked in this process is updates that involve:
a. The key and major stakeholders
b. Dependencies
c. High- level scope
d. Benets
120. Each time a new component is approved by the Portfolio Oversight Group,
it means new stakeholders will have a greater interest in portfolio manage-
ment in the organization. This means as you work to manage which stake-
holders receive which information, you need to review the:
a. Communication requirements analysis
b. Portfolio management information system
c. Dashboards
d. Portfolio
121. When your government agency implemented portfolio management as man-
dated by the President in the previous administration, each agency was required
to have a Portfolio Oversight Committee as a way to reduce expenditures on
meaningless programs and projects. The Committee was to make decisions and
meet quarterly. It was effective at rst, but then became the ‘fad’ of the adminis-
tration and was not a mandate when the new President was elected. This means:
a. The portfolio management plan may need revision
b. Each agency should use resources dedicated to portfolio management to
other initiatives
c. The Committee should remain but meet at the beginning of the budget
cycle
d. The emphasis should shift to ‘doing programs and projects right’
Practice Test 2 ◾ 243
122. Assume your organization desires to add more rigor to its selection process
than just comparing one possible component to another and has added
some additional criteria. Consider the table below:
Components
Criterion 1
Criterion 2
Probability
of Success Criterion 3 Criterion 4
PriorityROI Rank Result Rank
Degree of
Importance Rank
Payback
Period Rank
Project 1 12.0 2.1 1.5 $4.6 M
Program 1 14.0 18.9 4 $2.5 M
Project 2 15.5 8.45 2 $3 M
Operational
Activity
19.0 5.95 1 (– –) $4.3M
Program 2 16.0 8.8 5 (++) $2M
Project 3 10.0 5.4 3 $5.2 M
Based on the data, you would recommend:
a. Project 1
b. Operational Activity
c. Project 2
d. Program 2
123. Assume you work in the beef industry. You have performed a risk assess-
ment and have identied ve high priority risks to the portfolio: regulatory
changes, random inspections, disease, poor employee morale, and technol-
ogy changes. Each of these risks requires additional analysis before exten-
sive monitoring will begin to watch for it. As part of your analysis, especially
since millions of pounds of beef were recalled that affected your company
and ve others, you decided to review the portfolio over the past three years
for changes and:
a. Prioritize risk lists
b. Focus on sales forecasts
c. Determine trends
d. Assess the frequency of meeting cost objectives
244 ◾ PfMP® Exam Practice Tests and Study Guide
124. You are considering proposing a new component as you work to optimize
the portfolio. This component is to design the next generation refrigerator that
also can serve as an oven and a dishwasher so there is only one large appli-
ance in one’s home. It will use state- of- the art technology and will be offered
at a reasonable cost. It is designed to be attractive and will not require much
space. To support your recommendation, you decide to conduct:
a. An analysis of the expected benets from the component
b. A feasibility study
c. An analysis of competing efforts under way in the company
d. A SWOT analysis
125. Many categories are useful for portfolio management, and it is a best prac-
tice in determining them that they focus on the key areas that contribute to
overall business value. Assume your company manufactures anti- bacterial
soap products and has been doing so for over 40years. It also focuses on
developing new soap products to appeal to different consumers. While
regulatory/ compliance is a key category for your company’s components,
another is:
a. Foundational
b. Urgency
c. Support strategic goals
d. Resource requirements
126. The portfolio manager relies on an up- to- date list of components in the
portfolio. With an understanding of the components in the portfolio, it leads
to an effective communications approach as it:
a. Makes sure all component managers receive all portfolio- related
information
b. Enables the development of a standardized portfolio communications
plan
c. Can standardize communications at the portfolio level
d. Links portfolio performance with stakeholder information requirements
127. As you work on the structure for components to be in your portfolio charter,
since this is a new approach in your pharmaceutical company, you are set-
ting up various assumptions for the Portfolio Review Board using different
combinations of potential components and new components. The objective
is to determine different portfolio scenarios. One approach to use is:
a. Cost- benet analysis
b. Prioritization analysis
c. Interdependency analysis
d. Scenario analysis
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