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 4)

Questions 16–20

1. 16application · medium

   A portfolio risk assessment has identified a risk that could cause a delay in the delivery of a key strategic benefit. The risk has a low probability but a very high impact. The portfolio board is considering whether to accept the risk because the probability is low. What is the most appropriate response?

   • AAccept the risk because the probability is low and the cost of mitigation may not be justified
   • BIgnore the risk because it is unlikely to happen
   • CImplement a mitigation plan to reduce the impact, even though the probability is low
   • DTransfer the risk to a third party by purchasing insurance, regardless of cost
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A portfolio is funded through a single annual budget, but the finance team only reports on actual spend against budget at the end of the year. The portfolio manager wants to make mid-year adjustments to reallocate funds. What is the most appropriate financial reporting practice?

   • AAsk project managers to report their spend directly to the portfolio manager on an ad hoc basis
   • BReport only on projects that are overspent, to focus attention on problems
   • CContinue with annual reporting because the budget is fixed for the year
   • DProvide monthly financial reports that show actual spend, forecast outturn, and variances against budget
   Reveal Solution Discussion Select an answer first
4. 18foundation · easy

   Which stakeholder engagement approach is appropriate for a stakeholder with high influence and high interest in the portfolio?

   • AKeep them informed with periodic updates
   • BKeep them satisfied with minimal interaction
   • CManage them closely with regular engagement and involvement
   • DMonitor their reactions from a distance
   Reveal Solution Discussion Select an answer first
5. 19expert · hard

   A portfolio risk assessment has identified a risk that could affect the delivery of a key strategic benefit. The risk is owned by a project manager, but the impact would be felt across the portfolio. The project manager is reluctant to take action because the risk is unlikely to materialize. What is the most appropriate portfolio-level response?

   • AIncrease the project manager's authority to make risk decisions without portfolio oversight
   • BEscalate the risk to the portfolio board and decide on a response based on the portfolio-wide impact
   • CTransfer the risk to another project that is better able to handle it
   • DAccept the project manager's assessment and take no action, as the risk is unlikely to occur
   Reveal Solution Discussion Select an answer first
6. 20foundation · easy

   In portfolio-level stakeholder engagement, what is the primary purpose of stakeholder analysis?

   • ATo determine the exact budget for stakeholder communication
   • BTo create a list of all employees in the organization
   • CTo assign blame for portfolio failures
   • DTo identify stakeholders and understand their interests, influence, and expectations
   Reveal Solution Discussion Select an answer first