Understand the Terms and Concepts Relating to the Portfolio Delivery Cycle MOP-FOUNDATION Practice Questions (Page 8)

Questions 36–40

1. 36foundation · easy

   What is the core principle of management by exception in portfolio delivery?

   • AEvery decision, no matter how small, is escalated to senior management.
   • BManagement attention is focused only on deviations from the agreed plan or tolerances.
   • CManagement reviews all portfolio activities on a daily basis.
   • DOnly positive deviations are reported to management.
   Reveal Solution Discussion Select an answer first
2. 37application · medium

   A portfolio director is considering two alternative ways to deliver a new customer service capability. One option is a large, transformative program; the other is a series of smaller incremental projects. The director wants to test both approaches before committing fully. Which decision-making model supports this?

   • AStaged release of funding, where the larger program is funded in tranches.
   • BChampion-challenger model, where the preferred approach is championed and the alternative is run as a challenger to compare performance.
   • CManagement by exception, where only the larger program is reported to the board.
   • DOne version of the truth, where both options are reported using the same data.
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4. 38foundation · easy

   What is the purpose of staged release of funding in portfolio management?

   • ATo control investment by releasing funds in tranches as the portfolio or project demonstrates progress and value.
   • BTo reduce the total cost of the portfolio by negotiating discounts with suppliers.
   • CTo ensure that all projects receive equal funding at each stage.
   • DTo provide all funding upfront to avoid delays in project execution.
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5. 39application · medium

   A portfolio finance team is implementing a financial management practice. They want to ensure that the total cost of each initiative is visible and that funding decisions are made with accurate, current data. Which approach should they take?

   • ATrack only the initial budget for each project, and report variances at the end of the financial year.
   • BAsk each project manager to maintain their own budget spreadsheet and submit it monthly.
   • CUse a single financial system to track all portfolio costs, with regular reconciliation and reporting of actuals against forecast.
   • DReport only the total portfolio spend, without breaking it down by initiative.
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6. 40foundation · easy

   What is a key to success for the risk management practice?

   • AA culture that encourages open reporting of risks and a clear process for escalation.
   • BDocumenting risks only after they have occurred.
   • CFocusing only on risks that are easy to manage.
   • DAvoiding any discussion of risks to prevent panic.
   Reveal Solution Discussion Select an answer first