Be Able to Apply and Tailor the Practices, Techniques and Responsibilities of the Portfolio Delivery Cycle to a Scenario MOP-FOUNDATION Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A public sector organization runs a portfolio of 40 projects. The governance board meets monthly and reviews a 200-page report covering every project's status, risks, and finances. The board has recently missed two critical decisions because members could not absorb the volume. The portfolio office wants to improve decision-making without losing oversight. What should they do?

   • AIncrease the board meeting frequency to bi-weekly and require each project manager to present in person.
   • BIntroduce a tiered governance structure with delegated authority levels, so that only projects exceeding agreed thresholds are escalated to the main board.
   • CDelegate all project decisions to project managers and have the board only review the annual budget.
   • DContinue with the monthly board meeting but reduce the report to a one-page summary of all projects, highlighting only the top three risks.
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2. 22foundation · easy

   Which activity is an example of monitoring risks at the portfolio level?

   • AAssigning a risk owner to each risk
   • BRegularly reviewing the portfolio risk register to update risk status
   • CDeveloping a risk response plan
   • DConducting a one-time risk identification workshop
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4. 23expert · medium

   A portfolio includes a project that is expected to deliver significant cost savings, but it requires a large upfront investment. The organization has a limited capital budget and must also fund several mandatory compliance projects. The portfolio manager needs to decide whether to proceed with the cost-saving project. What is the most appropriate financial analysis technique?

   • AConduct a cost-benefit analysis that compares the net present value of the project's benefits against its costs, considering the organization's cost of capital.
   • BUse a simple payback period to determine how quickly the investment will be recovered.
   • CReject the project because it requires a large upfront investment, and the organization cannot afford it.
   • DApprove the project because the cost savings are obvious and will benefit the organization.
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5. 24application · medium

   A retail company's portfolio includes a mix of projects: some deliver new revenue, some reduce costs, and some are regulatory compliance. The portfolio manager wants to ensure that benefits are tracked consistently across the portfolio. What is the most appropriate approach?

   • AEstablish a portfolio benefits register that captures each project's expected benefits, with clear owners and measurement criteria, and review it at regular intervals.
   • BCreate a benefits realization plan for each project, but do not review them at the portfolio level until the projects close.
   • CFocus only on financial benefits and ignore non-financial benefits such as compliance or customer satisfaction.
   • DAsk each project manager to report benefits in their own format, and consolidate them at the end of the year.
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6. 25expert · medium

   A portfolio of projects includes a project that is expected to deliver benefits in three years, but it has a high risk of failure. Another project is expected to deliver benefits in six months with low risk. The portfolio manager has limited funds and must choose between the two projects. What is the most appropriate decision-making approach?

   • AEvaluate both projects using a balanced scorecard that considers strategic fit, risk, and timing of benefits, and make a decision based on the overall score.
   • BChoose the project with the quickest benefits, as they are more certain.
   • CChoose the project with the highest potential financial return, regardless of risk.
   • DChoose the project with the lowest risk, as it is safer.
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