270 ◾ PfMP® Exam Practice Tests and Study Guide
35. c. The original portfolio charter
The portfolio charter should be reviewed to ensure the charter and the
portfolio remain aligned or whether an update to the charter is required.
Portfolio Management Standard, p. 53
Task 5 in the ECO in Performance
36. d. Manage necessary changes
Since portfolio management embraces a new way of working with its
emphasis on strategic initiatives, managing changes is an integral part
of its planning process.
PMI (2013) Managing Change in Organizations, p. 46
Task 7 in the ECO in Strategic Alignment
37. c. Determining constraints from capabilities
In this situation, training has been conducted, but its focus has been on
tools and techniques. The analysis reveals training is lacking on inter-
personal skills, critical to project management. It shows human resource
capability and capacity will be a limiting factor.
Portfolio Management Standard, p. 74
Task 7 in the ECO in Performance
38. b. Use the portfolio and impact ratings as stated in the portfolio risk man-
agement plan
Each organization has different methods and ratings for probability and
impact. A risk owner should consult the portfolio risk management plan
and follow the ratings in it.
Portfolio Management Standard, pp. 128, 130
Task 4 in the ECO in Risk Management
39. c. Use the human resources person on the Portfolio Review Board and ask
him to navigate the negative impact on the people involved
The human resources unit can identify skills, qualications, and other
competencies needed for success and can help acquire them. In addition
it can help facilitate resource realignment and minimize any negative
impacts resulting from organizational changes affecting the portfolio.
Portfolio Management Standard, p. 13
Task 5 in the ECO in Governance
Practice Test 2 ◾ 271
40. b. A funnel chart
Prepared in the shape of a funnel, these reports can show by compo-
nent the amount of time one is working on the component and the
labor rate. It then can be used to show resource efciency. As an exam-
ple, one can see if a resource is being used on too many components
or if a person seems to be spending more than the allocated time on
the component.
Portfolio Management Standard, p. 96
Task 7 in the ECO in Performance
41. c. Components may support more than one of these areas
It is a best practice to set up organizational value areas to see the areas
the components are most likely to impact. Components may support
more than one area, and this approach can help determine resource
allocation to best benet the organization. It is important that each
component support a value area in decision making.
Portfolio Management Standard, p. 85
Task 1 in the ECO in Strategic Alignment
42. c. Use a dashboard with summary information in these areas
A variety of different types of dashboard reports can be prepared. They
are useful to easily see multiple messages about the status of the portfo-
lio in a graphical report.
Portfolio Management Standard, p. 117
Task 5 in the ECO in Communications
43. d. You will use your contingency reserve and work aggressively to com-
plete the component
Acceptance is a risk response strategy and can be passive or active. An
active approach involves use of a contingency reserve in terms of time,
money, and resources to handle the risk.
Portfolio Management Standard, p. 134
Task 6 in the ECO in Risk Management
272 ◾ PfMP® Exam Practice Tests and Study Guide
44. d. Desired risk prole
While the risk prole is detailed in the risk management plan, it also is
considered in the portfolio management plan in the section on balanc-
ing the portfolio and managing dependencies. In balancing, a key area
of emphasis is the ability to maximize the portfolio return according to
the organization’s predened risk prole.
Portfolio Management Standard, p. 63
Task 4 in the ECO in Governance
45. c. Day- to- day processes
Operations management and the involvement of its processes are essential
for portfolio management along with program and project management as
delivery of value is then realized through these day- to- day processes.
Portfolio Management Standard, p. 7
Task 8 in the ECO in Strategic Alignment
46. c. Program B
Using NPV as a way to recommend components for optimization, a
dollar one year from today is worth less than a dollar today. The more
the future is discounted, or the higher discount rate, the less the NPV of
the component. If the NPV is high, the component then is ranked high,
leading to Program B.
Milosevic, pp.42–44
Portfolio Management Standard, p. 74
Task 7 in the ECO in Performance
47. c. Performance management plan
As a subsidiary plan to the portfolio management plan, one purpose of
this plan is to focus on resource management planning to best ensure
the portfolio component mix is one that can generate maximum value.
Portfolio Management Standard, p. 87
Task 4 in the ECO in Governance
48. a. Update changes to the portfolio component lists
This action is necessary based on the governance recommendations,
and this update is an example of a portfolio process asset to update as
an output of the Manage Portfolio Risks process.
Portfolio Management Standard, p. 135
Task 6 in the ECO in Risk Management
Practice Test 2 ◾ 273
49. c. Forecasting resource supply and demand
By forecasting resource supply and demand at the portfolio level, the
Portfolio Management Ofce then supports the Enterprise Program
Management Ofce so that resource demand can be further broken
down into supply and demand for programs and projects.
Portfolio Management Standard, p. 18
Task 8 in the ECO in Performance
50. d. Document communications required for successful Implementation
Portfolio management is a major culture change if set up and managed
effectively. As a rst step, a portfolio strategic plan is prepared, with a
section in it involving communications required for successful change
and implementation.
Portfolio Management Standard, p. 46
Task 1 in the ECO in Strategic Alignment
51. c. Your focus is on events
Dashboards are status display mechanisms to monitor operational per-
formance as they measure performance against targets and thresholds
using right- time data. At the portfolio level, a strategic dashboard moni-
tors execution of strategic objectives, and the purpose is to align around
strategic objectives, emphasizing management.
Kerzner (2011), pp.37–39
Portfolio Management Standard, p. 117
Task 3 in the ECO in Performance
52. c. Stakeholder engagement from the start
This situation shows the importance of innovative communications
management and engaging stakeholders from the start to best embrace
portfolio management and support the transformation initiative.
PMI (2013) Change Management Guide, p. 59
Task 2 in the ECO in Communications
53. b. Continuity and alignment of expectations are critical to success
Stakeholder analysis is necessary in managing strategic change since it
helps to ensure continuity and also to align stakeholder expectations
with the strategic changes and portfolio realignment that will result.
Portfolio Management Standard, p. 54
Task 3 in the ECO in Strategic Alignment
274 ◾ PfMP® Exam Practice Tests and Study Guide
54. c. It has measures and templates for reporting
The PMIS can build on historical information as it can contain previ-
ously collected metrics and the templates used for reporting. The port-
folio manager then has the option of using what has been proven to
be successful in the past or can make changes to foster continuous
improvement.
Portfolio Management Standard, p. 90
Task 2 in the ECO in Governance
55. d. An emphasis on risk management may lead to new components
Risk management inuences the portfolio in many ways. In this situa-
tion, hurricanes are a risk that is a threat to the country. It then leads to
adding new components as a way to mitigate this risk in the future.
Portfolio Management Standard, p. 119
Task 1 in the ECO in Risk Management
56. c. You need approval to update the portfolio strategic plan
If the portfolio manager cannot implement the portfolio, he or she should
recommend or gain approval to update the portfolio strategic plan
Portfolio Management Standard, p. 62
Task 7 in the ECO in Strategic Alignment
57. d. Have the Portfolio Review Board obtain approval by the executive team
Approval by the executive team demonstrates to the rest of the organi-
zation the importance of collecting these metrics and targets to assess
whether the portfolio is progressing as expected.
Portfolio Management Standard, p. 91
Task 3 in the ECO in Performance
58. a. Preparing the governance model
The governance model denes the portfolio’s decision- making process,
rights and authorities, responsibilities, rules, and protocols.
Portfolio Management Standard, p. 62
Task 1 in the ECO in Governance
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