Be Able to Identify, Analyse and Distinguish Between Appropriate and Inappropriate Application of Portfolio Delivery Practices and Techniques to a Scenario MOP-FOUNDATION Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   An organization funds its portfolio using annual budgets allocated to each department. Mid-year, a new strategic opportunity arises that requires immediate funding, but the only way to fund it is to take money from a project that is already underway. The portfolio board is reluctant to reallocate funds because it would disrupt the existing project. What is the most appropriate financial management approach?

   • AReject the new opportunity because the annual budget cycle is fixed and cannot be changed
   • BApprove the new opportunity and take the funds from the existing project without further analysis
   • CAssess the impact of reallocating funds on the existing project and the portfolio as a whole, then make a decision based on strategic priorities
   • DAsk the department that proposed the new opportunity to fund it from its own contingency, even if that reduces its other activities
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   Which risk response is appropriate for a high-impact risk that cannot be easily mitigated and is outside the portfolio's risk appetite?

   • AReduce the risk by increasing the project budget
   • BAccept the risk without any action
   • CTransfer the risk to a third party without further analysis
   • DAvoid the risk by discontinuing the related initiative
   Reveal Solution Discussion Select an answer first
4. 13expert · hard

   A portfolio board is under pressure to approve a high-profile project quickly. The project has significant strategic value but also carries a major risk that could affect the whole portfolio. The board is considering bypassing the usual risk assessment to meet the deadline. What is the most appropriate course of action?

   • AApprove the project but add a condition that the risk assessment be completed after the project starts
   • BDelegate the risk assessment to the project sponsor, who can approve the project without board involvement
   • CApprove the project without a full risk assessment to avoid delaying the strategic opportunity
   • DConduct a fast-tracked risk assessment that focuses on the major risk and its potential portfolio impact, then make a decision
   Reveal Solution Discussion Select an answer first
5. 14foundation · easy

   Which financial reporting practice is appropriate for portfolio-level management?

   • AReporting financials only at the end of the fiscal year
   • BSharing financial reports only with the project managers
   • CProviding regular financial reports that compare actual spend against budget at the portfolio level
   • DReporting only on the total portfolio spend without component details
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A portfolio includes a project that will affect a local community. The portfolio board has decided not to engage with the community because the project is small and the board believes the community has no influence. What is the most appropriate stakeholder engagement approach?

   • ADo not engage because the community has no influence and engagement would be a waste of time
   • BEngage with the community because they are affected by the project, even if they have low influence
   • CEngage only if the community raises concerns, to avoid unnecessary communication
   • DDelegate all engagement to the project manager, as it is a project-level issue
   Reveal Solution Discussion Select an answer first