Practice Test 2 ◾ 245
128. You are managing a new product designed to transform your company so it
gains market share and provides a less expensive and easier to use approach
than Cloud Computing. Your executives set up a collocated team for this
project, which is located off site from the company’s main campus. Everyone
on the team has signed a non- disclosure agreement so competitors do not
nd out about this product. It is ranked number one in the company’s port-
folio. As the project manager, you expect to know about:
a. Concerns of the Portfolio Review Board members
b. Changes, risks, and issues
c. Benets and outcomes toward strategic goals
d. Financial standing of the company
129. Your company has a terric opportunity to bid on a contract from the U.S.
Department of Defense. While your rm has the required expertise to do
the work, and the campaign manager has an excellent working relationship
with the customer, there is a requirement that to bid on this project, the
company must be CMMI Level 3 certied. Your company is only certied at
Level 2. This requirement is one that represents a negative risk even though
the customer has been involving the campaign manager in discussions
about the project for two years. Everyone was surprised by this clause in the
Request for Proposal (RFP). The best course of action is to:
a. Attend the bidders conference and ask that this clause be removed
b. Note in the proposal that the company is Level 2 certied and expects to
be Level 3 certied by the time of the contract award
c. Form a consortium with another rm that is Level 3 certied
d. Work with a company that is Level 3 certied as a subcontractor
130. Each Portfolio Review Board meeting tends to address certain issues. While
some can be resolved during the meeting, such as whether or not to repri-
oritize a portfolio component because a key resource is unavailable, others
require more time such as the need to acquire technology. As the portfolio
manager, you believe it is useful to present at these meetings:
a. An issue log
b. An issue aging chart
c. A list of both outstanding risks and issues to resolve
d. Those issues that involve more than one portfolio component
246 ◾ PfMP® Exam Practice Tests and Study Guide
131. Your health insurance company has set up its portfolio into ve different cate-
gories: research and development, IT, Medicare, government health insurance,
and non- government health insurance. Funding is allocated yearly to each of
these six categories. As the portfolio manager at the enterprise level, you:
a. Ensure such allocations are reected in the portfolio’s strategic plan
b. Meet with the CFO and determine these allocations when the budget for
the scal year is being prepared
c. Meet with the managers of the six portfolios once the budget allocations
are known
d. Use your existing inventory of components in the portfolio and in the
pipeline to determine funding allocations
132. The two major purposes of the portfolio charter are to authorize the portfo-
lio manager to:
a. Execute the strategic plan and document roles and responsibilities
b. Staff a Portfolio Management Ofce and to set up a governance structure
c. Establish portfolio management processes and procedures
d. Execute portfolio processes and apply resources to components
133. Recently the portfolio manager in your pet food company left. You applied
for the position and were selected. Fortunately, the previous portfolio man-
ager maintained a decision register from Portfolio Review Board meetings.
This decision register:
a. Should enable sufcient information as to why a component was
selected, deferred, or rejected
b. Provides data as to which members of the Board supported each decision
and those who were not in favor of it
c. Should be part of the organization’s knowledge repository
d. Is a portfolio process asset
134. Your investment company has practiced portfolio management building on
concepts from Markowitz since it began a corporate focus on program and
project management 30years ago. Since then, a number of portfolio pro-
cess assets have been collected and retained. As the portfolio manager, you
recognize their importance especially as you work to manage the available
portfolio information, but you need to assess their usefulness based on:
a. Results from your communications requirements analysis
b. Insight from your stakeholder analysis
c. Available communications methods
d. The communications matrix
Practice Test 2 ◾ 247
135. Similar to a risk management plan for a program or project at the portfolio
level, this plan shows how portfolio risk management activities will be set
up and managed. Not to be overlooked as a part of this plan is:
a. References to corporate risk guidelines
b. The specic risks that have been identied
c. Portfolio reports
d. Portfolio issues
136. You have prepared a resource schedule to use before Portfolio Review Board
meetings as a form of a resource capacity and capability analysis. Since you
work in a highly scientic organization, intellectual capital is a key area of
concern. This approach is useful because it:
a. Supports resource leveling
b. Shows impacts of resource optimization decisions
c. Indicates resource bottlenecks
d. Combines and details forecasts of ongoing supply and demand
137. One advantage of the roadmap is that it communicates to stakeholders:
a. The scope of the portfolio
b. The link between organizational strategies and portfolio management
c. The mapping of benets to components
d. The resources required to support the components and when they may
be needed
138. As the portfolio manager for the Federal Railroad Administration, recently
there was a strategic change to the portfolio because of the need to develop
and implement new safety regulations to avoid train derailments because of
the need to travel at high speeds when transporting oil and hazardous mate-
rials. To develop these regulations, which are considered a high priority by
the Administrator and outside special interest groups, the portfolio requires
new components to also ensure the regulations are implemented and fol-
lowed. This means as the portfolio manager you should:
a. Engage stakeholders through targeted messages
b. Design reports that differ from those for other components since these
components have high visibility
c. Announce this change through a press release
d. Prepare a report based on key risks and issues with these components
248 ◾ PfMP® Exam Practice Tests and Study Guide
139. Your pharmaceutical company implemented a sophisticated portfolio man-
agement process seven years ago and purchased an expensive software tool
to help in prioritizing projects. However the process turned out to be too
cumbersome, and your CEO hired a leading consulting rm to make recom-
mendations to simplify it. Now each division prepares a simple spreadsheet
of its top six portfolio components as shown below:
Project
A
Program
A
Operational
Activity A
Project
B
Project
C
Program
B Rank
Project A 1 1 1 1 1 5
Program A 0 0 1 1 0 2
Operational
Activity A
0 1 1 1 0 3
Project B 0 0 0 1 0 1
Project C 0 0 0 0 0 0
Program B 0 1 1 1 1 4
This approach is useful as it:
a. Uses different criteria based on component type
b. Shows the highest score
c. Presents a measure of success based on the ratings
d. Weights criteria by importance
140. Assume you are preparing a portfolio risk management plan. You are talking
with key stakeholders as well as reviewing existing artifacts. One that is easy
to overlook is:
a. Risk processes
b. Scoring techniques
c. Risk interdependencies
d. Vision statement
Practice Test 2 ◾ 249
141. From your research in organizations that have been successful in portfolio
management, as you are doing some benchmarking as you implement it in
your organization, you nd many organizations decide to do so as there are
more programs and projects under way than available resources to execute
them. Assume you are now working to develop the portfolio charter. In
doing so, it is useful to review existing portfolio process assets. One that
should not be overlooked is:
a. Skill set limitations
b. Organizational variables
c. Stakeholder relationships
d. Interdependencies
142. Assume you are working with the Director of the EPMO to develop a com-
plete inventory of the work under way in the company. Such an inventory
has not been developed previously. You characterize your work as one
that is:
a. Immature but evolving
b. Incomplete as some people do not wish to disclose their work as they
fear it could be terminated
c. As complete as possible given the EPMO’s support
d. Necessary to develop the portfolio management plan
143. While your social media company is new to portfolio management, the
executive team is committed to its implementation, and you are pleased to
be the portfolio manager since you have your PfMP. You have prepared your
portfolio strategic plan, roadmap, and charter. The next logical step is to:
a. Set up the governance structure
b. Convene the rst meeting of the Portfolio Review Board
c. Prepare the portfolio communications plan
d. Prepare the portfolio management plan
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.