Know Facts, Terms and Concepts Relating to the Principles Upon Which Efficient and Effective Approaches to Portfolio Management Are Built MOP-FOUNDATION Practice Questions (Page 1)

Questions 1–5

1. 1expert · hard

   A portfolio manager is working with a portfolio that includes a mix of mandatory compliance projects and discretionary strategic projects. The compliance projects are consuming a significant portion of the budget, leaving little room for strategic investment. The board is frustrated that the portfolio is not delivering on its growth targets. What is the most effective way to apply the Five Principles to address this situation?

   • APrioritize the strategic projects and defer the compliance projects until the next fiscal year.
   • BRemove the compliance projects from the portfolio and manage them outside the portfolio process.
   • CAccept the situation as a fixed constraint and adjust the strategic targets downwards.
   • DChallenge the scope of the compliance projects to see if there is a more cost-effective way to achieve the mandatory outcomes.
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   According to the MoP (Management of Portfolios) guidance, which principle emphasizes that the portfolio should be managed as a single, coherent entity rather than as a collection of independent projects and programmes?

   • ABe business focused
   • BBe transparent
   • CBe aligned
   • DBe holistic
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4. 3application · medium

   An organization's executive team is reviewing the annual portfolio. They notice that the portfolio is heavily weighted toward short-term cost-saving initiatives, with very few initiatives that build new capabilities for future growth. The CEO asks the portfolio manager to rebalance the portfolio to better reflect the long-term strategic goals. Which principle is the CEO asking the portfolio manager to apply?

   • ABe actively managed
   • BBe transparent
   • CBe simple to apply
   • DBe aligned
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5. 4foundation · easy

   Which of the following correctly lists the five principles of portfolio management as defined in the MoP (Management of Portfolios) guidance?

   • ABe holistic, be aligned, be business focused, be transparent, be flexible
   • BPortfolio definition, portfolio delivery, portfolio review, portfolio optimization, portfolio closure
   • CSenior management commitment, governance alignment, strategy alignment, portfolio office, energy and engagement
   • DBusiness as usual, change initiatives, resource management, benefits realization, risk management
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6. 5expert · hard

   A portfolio manager discovers that a project manager has been under-reporting the true costs of a major project to keep it within the approved budget. The project is strategically important and is progressing well. The portfolio manager is concerned about the integrity of the portfolio data. Which action best upholds the Five Principles?

   • AEscalate the issue to the project sponsor and the portfolio board, and ensure the correct data is reported going forward.
   • BTerminate the project immediately for violating reporting standards.
   • CQuietly correct the data and continue monitoring the project, as the project is strategically important.
   • DIgnore the issue, as the project is delivering good results and the end justifies the means.
   Reveal Solution Discussion Select an answer first