PfMP Free Practice Test

The governance board has an integral part in the realization of the portfolio strategic value. In your opinion as a portfolio manager, Governance board decisions are based on

1. A. Information given by the portfolio manager
2. B. Portfolio Strategic Alignment
3. C. Portfolio Process Assets
4. D. Portfolio reports

Correct Answer: D

While there are a number of recommended contents of the portfolio strategic plan, a guiding principle is to:

1. A. Document assumptions and constraints
2. B. Recognize stakeholder risk tolerances
3. C. Recognize the portfolio will evolve through progressive elaboration
4. D. Define the portfolio vision and objectives to align with organizational strategy

Correct Answer: D

Managing risk is key to the success of any initiative. Risk is considered to be inherent in any activity we do in project management and at any level. When it comes to risk tolerance definition, which of the following is the correct one?

1. A. The confidence level of key stakeholders and executive management in the risk management activities
2. B. Threshold or attitude of an organization towards the negative effects of risks on the organization's portfolio
3. C. Threshold or attitude of an organization towards the positive or negative effects of risks on the organization's portfolio
4. D. Threshold or attitude of an organization towards the positive effects of risks on the organization's portfolio

Correct Answer: C

With the introduction of new legislation in your company, anyone now is entitled to medical services regardless of whether or not they are employed or have any pre-existing health conditions. Your insurance company's executives have been tracking this legislation as it means significant changes for your company; many employers who obtained insurance through your company may go elsewhere for lower costs. Recognizing this legislation may lead to a loss of revenue, your company decided to merge with another insurance firm to obtain greater market share. This merger, though, means some existing projects may not be needed, and the workforce will be reduced by 20 percent, Such a significant change will impact how components are categorized in your portfolio leading to:

1. A. The need for a re-constituted oversight group
2. B. Portfolio rebalancing
3. C. A requirement to update the portfolio management plan
4. D. A new portfolio prioritization model

Correct Answer: B

One of your component managers came to you to tell you about a risk affecting his component that will badly impact the component and might affect the portfolio. After assessment, the risk turned out to be of low probability with high impact. What do you do as a portfolio manager?

1. A. Inform him to submit a change request to raise the component contingency because of this risk
2. B. Inform the component manager to add the risk to the risk register and follow up on it closely
3. C. Inform the component manager to add the risk to the risk register, assign a senior risk owner to it in order to follow up on it closely
4. D. Inform him that he does not need to worry, you will have a risk contingency reserve for his risk at a portfolio level

Correct Answer: D