Practice Test 2 ◾ 275
59. c. Can build forecasts based on trends in the data
This technique has many uses in the Manage Portfolio Information pro-
cess. Data may be collected in a raw form that lacks complete context
and may be from external sources especially for purposes of compara-
tive analysis. Through this technique, data can be analyzed to ensure
it has value. To make the data more meaningful, they can be used for
forecasts and trends.
Portfolio Management Standard, p. 117
Task 5 in the ECO in Communications
60. c. Update existing resource portfolio allocations and schedules
As a result of supply and demand analysis, it often is necessary to then
recommend to the Portfolio Governance Group that the portfolio be
updated to change the component mix as required.
Portfolio Management Standard, p. 96
Task 6 in the ECO in Strategic Alignment
61. a. Structural risk
A structural risk is one that arises from the wider environment of the
organization. It is similar to a systems risk. It is one that affects the
overall portfolio, as in this situation, if it is not mitigated, the company’s
image and market share would be affected adversely.
Portfolio Management Standard, p. 122
Task 3 in the ECO in Risk Management
62. d. Legal
In this scenario, it is appropriate for representatives from the legal
department to be part of phase- gate reviews as these products will
require approval from regulatory and legislative bodies at various levels.
Portfolio Management Standard, p. 22
Task 1 in the ECO in Governance
276 ◾ PfMP® Exam Practice Tests and Study Guide
63. d. Burn- down chart
Such a report is helpful to compare planned, completed, or remain-
ing work and is especially helpful when a baseline is set. A variety of
resource reports are useful, as an output of the Manage Supply and
Demand process, to indicate whether resource capacity is matched opti-
mally against resource demand.
Portfolio Management Standard, p. 96
Task 7 in the ECO in Performance
64. a. Ensure redundant information is not provided
While some redundancy cannot be avoided and may even be inten-
tional to reach multiple recipients, the purpose of the reviews is to
assess requirements to eliminate redundant information.
Portfolio Management Standard, p. 112
Task 4 in the ECO in Communications
65. d. Ensures components in each category have a common goal
When components are in categories, they have a common goal and
can be measured on the same basis regardless of where they are in the
organization.
Portfolio Management Standard, p. 64
Task 3 in the ECO in Strategic Alignment
66. c. Sustainability
While all the answers are possible metrics to collect, sustainability has
become an area of greater interest in the past few years.
Portfolio Management Standard, pp.85–86
Task 3 in the ECO in Performance
67. d. The portfolio management plan
These dependencies and the inuence of the components inuence the
approaches dened in the management plan for communications and
risk management.
Portfolio Management Standard, p. 60
Task 4 in the ECO in Governance
Practice Test 2 ◾ 277
68. b. There are external environmental factors to consider
In preparing the portfolio strategic plan external environmental factors
need to be reviewed; in this situation, an example is the regulations
affecting this industry, interest by external stakeholders such as con-
sumer interest groups, marketplace conditions, and the fact that employ-
ees may be members of unions.
Portfolio Management Standard, pp. 38, 44
Task 4 in the ECO in Strategic Alignment
69. c. The roadmap is useful to show the portfolio’s structure
The roadmap is an input to the Plan Communication Management Plan
process as it shows the structure, interdependencies, and how components
interrelate in the portfolio to best achieve organizational goals and objec-
tives. Therefore consistent and timely communications of the roadmap and
changes to it are part of portfolio communications especially with a trans-
parent process.
Portfolio Management Standard, p. 108
Task 2 in the ECO in Communications
70. b. Reallocates resources
If some components are removed from the portfolio especially when
their contribution to benets is low, resources then are reallocated to
components with a higher priority.
Portfolio Management Standard, p. 71
Task 6 in the ECO in Performance
71. a. Guide talent development
The priority of each portfolio component guides resource planning,
hiring decisions, schedules, and capability allocations, which includes
long- range talent development.
Portfolio Management Standard, p. 9
Task 3 in the ECO in Strategic Alignment
278 ◾ PfMP® Exam Practice Tests and Study Guide
72. d. Maintain them on a watch list
While it is doubtful these risks will ever occur, organizational strate-
gies may change. For example the organization may acquire another
company that does work in a regulatory environment. These low
probability/ low impact risks should be maintained on a watch list with
trigger conditions set up to indicate that if they may occur as further
action then would be needed.
Portfolio Management Standard, p. 127
Task 2 in the ECO in Risk Management
73. c. Can model scenarios for resource use based on priorities
With scenario analysis, a tool and technique in the Manage Supply
and Demand process, tools in resource management are available.
They can model scenarios to best use resources to meet the portfolio
requirements.
Portfolio Management Standard, p. 95
Task 7 in the ECO in Performance
74. a. Is documented in the portfolio strategic plan
Prioritization models may be simple or complex. Many organizations
use scorecards, but whatever approach is used, it is documented in the
portfolio strategic plan.
Portfolio Management Standard, p. 64
Task 2 in the ECO in Strategic Alignment
75. a. Establish a portfolio management information system
The portfolio management information system is a tool and technique
in Authorize Portfolio process and indicates which portfolio compo-
nents have assigned resources.
Portfolio Management Standard, p. 79
Task 2 in the ECO in Governance
Practice Test 2 ◾ 279
76. a. Set it up to treat the project as an option
Options analysis is appropriate in this situation as the project is large,
with risks, and requires a large capital investment. NPV is not appropri-
ate as it is not a routine project. This approach can be extensive as dif-
ferent options are determined, but by doing so a potentially protable
project may become affordable when the risks may seem too great.
Milosevic, pp.61–63
Portfolio Management Standard, p. 74
Task 7 in the ECO in Performance
77. a. Document this approach in the methodology section
The portfolio risk management plan should include a methodology sec-
tion that includes the approach, tools, and data sources that will be used.
Portfolio Management Standard, p. 128
Task 2 in the ECO in Risk Management
78. d. Create the portfolio mix with the greatest potential
As the portfolio is optimized it evaluates the selection criteria and ranks
components. The purpose is to create the portfolio mix that has the
greatest potential to support organizational strategy collectively.
Portfolio Management Standard, p. 71
Task 6 in the ECO in Performance
79. a. Components are focused on alignment to strategic objectives
The objective of portfolio management is to align the portfolio to strate-
gic objectives and approve only those components that support strategic
objectives. The portfolio then is re- examined if the strategy changes.
Portfolio Management Standard, p. 46
Task 1 in the ECO in Strategic Alignment
80. c. Portfolio Management Plan
This plan is an input to the Manage Supply and Demand process. It
contains guidelines in a number of areas to report risks, communicate
with the team, and to recommend changes in components such as
those that are due to constraints on resources.
Portfolio Management Standard, p. 94
Task 4 in the ECO in Governance
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