Practice Test 2 ◾ 285
105. b. A leading indicator of future sales potential
The portfolio performance plan describes metrics to be collected to
assess portfolio performance. The emphasis is to see if the portfolio is
performing as planned. A pipeline of new products indicates the orga-
nization is continuing its strategic objectives of being the market leader.
Portfolio Management Standard, p. 91
Task 3 in the ECO in Performance
10 6. d. R isk appetite
Risk appetite, or the degree of uncertainty the organization is willing to
take in anticipation of a reward, is included in the risk measures sec-
tion of the portfolio risk management plan. It also includes risk catego-
ries and criteria for probability and impact, the probability and impact
matrix, and stakeholder attitudes toward risk.
Portfolio Management Standard, p. 128
Task 2 in the ECO in Risk Management
107. c. Provides an overall view of the portfolio
Such an approach is helpful in terms of optimizing and balancing the
portfolio as well as for funding allocation. It is also a method to use
during portfolio reviews especially if a component is to be terminated
for some reason.
Milosevic, pp.80–81
Portfolio Management Standard, pp.75–76
Task 7 in the ECO in Performance
108. d. Management’s intent to prioritize the work to meet the strategic
objectives
The portfolio management plan describes the approach to identify,
approve, procure, prioritize, balance, and manage the work in the port-
folio to meet strategic objectives.
Portfolio Management Standard, p. 39
Task 4 in the ECO in Governance
286 ◾ PfMP® Exam Practice Tests and Study Guide
109. c. Portfolio milestones, risks, cost and schedule
The sponsor is providing funding, resources, and high- level scope
requirements and requires regular information on these items plus the
portfolio’s return on investment.
Portfolio Management Standard, p. 111
Task 3 in the ECO in Communications
110. d. Dened roles and responsibilities
While a number of organizational enablers can assist in the implemen-
tation process, one that is required is to have an understanding of the
dened roles and responsibilities of those staff members who will be
actively involved in the portfolio management process.
Portfolio Management Standard, p. 30
Task 7 in the ECO in Performance
111. d. It will be revised several times
As component information is collected, in order to ensure the neces-
sary level of completeness, the portfolio manager may need to revise it
several times.
Portfolio Management Standard, p. 64
Task 4 in the ECO in Strategic Alignment
112. c. You need to update the portfolio management plan
The sponsors and governance model are noted in this plan; the other
stakeholders who will require or benet from information as to what is
under way with the portfolio then are added to this plan.
Portfolio Management Standard, p. 107
Task 1 in the ECO in Communications
113. d. A dened change control structure
Signicant changes in the organization’s environment may lead to a new
strategic direction that impacts portfolio resources and components;
these changes then rely on a dened change control structure.
Portfolio Management Standard, p. 63
Task 4 in the ECO in Governance
Practice Test 2 ◾ 287
114. b. The portfolio communications and risk plans also require updates
Actions in one process in the portfolio affect other processes. This
example represents a strategic change, and therefore, it may affect these
other plans.
Portfolio Management Standard, p. 30
Task 7 in the ECO in Strategic Alignment
115. b. Organizational integrity
Everyone should be concerned about risks to the integrity of the orga-
nization. Once integrity is lost, it is difcult or even impossible to
regain it. Other risks of interest at all levels include transparency and
corruption.
Portfolio Management Standard, p. 122
Task 3 in the ECO in Risk Management
116. a. Used sensitivity analysis
Also known as ‘what if’ analysis, this approach uses a variety of sce-
narios to determine the effect of certain actions or decisions in terms of
resource allocation and available capacity and capability to do existing
work and to pursue new work.
Portfolio Management Standard, p. 90
Task 7 in the ECO in Performance
117. c. States stakeholder expectations and requirements
The information in the performance management plan is useful as it
builds a framework for managing resources and to help generate value;
recognition of stakeholder expectations and requirements is necessary.
Portfolio Management Standard, p. 88
Task 4 in the ECO in Governance
118. d. Consolidate the reports that are submitted
Component reports are an input to the Manage Portfolio Information
process. The portfolio manager consolidates the reports, evaluates them
for impact on portfolio performance, and determines stakeholders to
receive the report.
Portfolio Management Standard, p. 116
Task 5 in the ECO in Communication
288 ◾ PfMP® Exam Practice Tests and Study Guide
119. b. Dependencies
As the portfolio strategic plan is updated as an output from the Develop
Project Charter process, it reects changes in the structure of the port-
folio. Updates may involve relationships, dependencies, and goals of the
portfolio components.
Portfolio Management Standard, p. 49
Task 4 in the ECO in Strategic Alignment
120. d . Por t folio
As an input to the Manage Portfolio Information process, the portfolio
must be reviewed as new stakeholders will have greater interest and
communications requirements once their components are approved.
Portfolio Management Standard, p. 115
Task 5 in the ECO in Communications
121. a. The portfolio management plan may need revision
If there are changes in the portfolio oversight process, the portfolio
management plan should be updated as needed.
Portfolio Management Standard, p. 84
Task 4 in the ECO in Governance
122. d. Program 2
In determining this choice, rank each column. Program 2 then has the
highest priority of the six components listed.
Portfolio Management Standard, p. 69
Task 5 in the ECO in Strategic Alignment
123. c. Determi ne trends
The purpose of status and trend analyses is to compare current portfo-
lio data and recent trends with recent changes in the portfolio. In this
situation, this analysis would be helpful to determine how often these
risks occurred and use the results to further assess their overall impact
to the portfolio.
Portfolio Management Standard, p. 127
Task 2 in the ECO in Risk Management
Practice Test 2 ◾ 289
124. d. A SWOT analysis
A SWOT analysis helps determine the value of the portfolio compo-
nents in the marketplace and how the components may affect or be
affected by competitors.
Portfolio Management Standard, p. 75
Task 6 in the ECO in Performance
125. a. Foundational
In this situation, the company has been in existence for 40years. A
component category of foundational is appropriate to ensure invest-
ments are made in the company’s infrastructure so it continues to grow.
Portfolio Management Standard, p. 68
Task 4 in the ECO in Strategic Alignment
126. c. Can consolidate communications at the portfolio level
The portfolio is an input to the Develop Portfolio Communications Plan
process. With an understanding of portfolio components, it affects the
communications approach to follow and does not lead to a misunder-
standing of stakeholder communications needs.
Portfolio Management Standard, p. 108
Task 2 in the ECO in Communications
127. d. Sensitivity analysis
It is an analytical method used as the project charter and structure are
established to enable decision makers to evaluate the possible outcomes
based on different assumptions.
Portfolio Management Standard, p. 47
Task 1 in the ECO in Governance
128. c. Changes, risks, and issues
Portfolio component teams are a stakeholder group. Program, project,
and operational managers expect notication of portfolio changes, risks,
and issues as they may affect their specic component and may require
them to take specic actions to ensure continued alignment with the
organization’s goals and objectives.
Portfolio Management Standard, p. 111
Task 3 in the ECO in Communications
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