Understand the Key Aspects of the Relationships Between the Portfolio and Other Corporate Functions and Activities with a Role in Delivering Strategic Objectives MOP-FOUNDATION Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   Which activity is an example of portfolio management supporting corporate governance?

   • AHiding underperforming initiatives from stakeholders
   • BAvoiding any external scrutiny of the portfolio
   • CProviding regular reports to the board on the performance and progress of the portfolio
   • DMaking unilateral decisions without consulting stakeholders
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2. 17expert · hard

   A government agency's portfolio includes a high-profile digital transformation programme and several smaller efficiency initiatives. The transformation programme has overspent its budget by 20% and is six months behind schedule. The agency's board is under political pressure to show progress. The programme manager proposes to hide the overspend by reclassifying costs to the efficiency initiatives. What should the portfolio office do?

   • AReport the true overspend and schedule delay to the board, and recommend a review of the programme's viability.
   • BTransfer the overspend to the contingency reserve and report it as a minor variance.
   • CAsk the programme manager to reduce the scope of the programme to bring it back on budget without board approval.
   • DAccept the reclassification to protect the programme's reputation and the agency's political standing.
   Reveal Solution Discussion Select an answer first
4. 18expert · hard

   A manufacturing firm has a portfolio of 12 programmes. The annual budget has been allocated, but mid-year, a new regulatory requirement emerges that mandates a compliance programme. There is no unallocated budget. The portfolio office must find funding. The CFO says the budget cannot be increased. The COO says BAU cannot absorb any more disruption. What should the portfolio office do?

   • AReview the existing portfolio to identify programmes that can be deferred, descoped, or stopped, and present a reallocation plan to the board.
   • BTell the regulator that the compliance programme cannot be funded this year.
   • CInstruct all programmes to reduce their budgets by 10% to fund the new compliance programme.
   • DAsk the compliance programme to start immediately and fund it from the contingency reserve without further approval.
   Reveal Solution Discussion Select an answer first
5. 19application · medium

   A manufacturing company's five-year strategy identifies 'digital supply chain' as a top priority. The annual strategic planning cycle has just produced a list of 20 proposed initiatives, but the budget envelope can fund only 12. The portfolio office has been asked to help decide which initiatives proceed. What is the portfolio office's primary contribution at this point?

   • ADefer the decision to the finance director, who controls the budget and knows which initiatives are affordable.
   • BTranslate the strategy into prioritization criteria and apply them to the 20 initiatives to produce a recommended portfolio for approval.
   • CRank the 20 initiatives by their expected financial return and select the top 12 for funding.
   • DAsk each business unit to justify its own initiatives and then fund all of them equally to avoid conflict.
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A retail bank's portfolio office has approved a new customer onboarding platform as a strategic change. The IT operations team, which runs the existing legacy onboarding system, is concerned that the new platform will disrupt daily transactions during the cutover. The portfolio office needs to ensure the change is delivered without degrading business-as-usual (BAU) service levels. What should the portfolio office do first?

   • AInstruct the programme manager to schedule the cutover for a weekend and provide the operations team with a detailed runbook.
   • BEstablish a joint working group with the operations director to agree on the change/BAU interface, including service-level protections and cutover criteria.
   • CAsk the finance team to set aside a contingency budget for any operational losses caused by the cutover.
   • DRequire the operations team to accept the new platform immediately after the programme's go-live gate is passed.
   Reveal Solution Discussion Select an answer first