Be Able to Identify, Analyse and Distinguish Between Appropriate and Inappropriate Application of Portfolio Definition Practices and Techniques to a Scenario MOP-PRACTITIONER Practice Questions (Page 6)

Questions 26–30

1. 26expert · hard

   A utility company is prioritizing its portfolio. The portfolio manager uses a scoring model with weights: strategic fit (50%), financial return (30%), and risk (20%). However, the CEO has stated that risk should be a primary consideration and that the company is risk-averse. The portfolio manager is concerned that the weights do not reflect this. What should the portfolio manager do?

   • ARemove financial return from the model entirely, as risk is the primary concern.
   • BKeep the current weights, as they are balanced and have been approved by the executive team.
   • CUse a different prioritization technique, such as a simple ranking by risk level.
   • DAdjust the weights to give risk a higher percentage, such as strategic fit (40%), financial return (20%), and risk (40%).
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   A retail chain is prioritizing its portfolio of 25 projects. The portfolio manager uses a scoring model that assigns weights to strategic fit (40%), financial return (30%), risk (20%), and resource availability (10%). Each project is scored by the project sponsor, and the scores are averaged to produce a final ranking. Is this prioritization approach appropriate?

   • AYes, because it uses a weighted scoring model that reflects multiple criteria and produces a transparent ranking.
   • BNo, because the portfolio manager should make the prioritization decision without input from sponsors.
   • CNo, because prioritization should be based solely on financial return to maximize shareholder value.
   • DYes, because it involves the project sponsors, who have the most detailed knowledge of their projects.
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4. 28foundation · easy

   Which scenario represents an inappropriate completion of a portfolio strategy and delivery plan?

   • AThe plan includes a timeline for the delivery of the portfolio's initiatives.
   • BThe plan is approved by the portfolio governance board before being communicated to stakeholders.
   • CThe plan includes a detailed description of the portfolio's strategic objectives and how they will be achieved.
   • DThe plan is finalized without considering the organization's resource capacity.
   Reveal Solution Discussion Select an answer first
5. 29expert · hard

   A media company has completed the definition cycle and is about to finalize the portfolio strategy and delivery plan. The plan includes the prioritized project list, funding allocations, and a delivery timeline. However, the plan does not include a section on how the portfolio will be governed or how changes to the portfolio will be managed. Is this a significant omission?

   • AYes, but only if the organization has a complex governance structure; otherwise it is not needed.
   • BYes, because the plan should include governance arrangements and a change control process to ensure the portfolio remains aligned and controlled.
   • CNo, because governance is a separate activity that is documented elsewhere, not in the portfolio strategy and delivery plan.
   • DNo, because the plan is a one-time document and does not need to address future changes.
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6. 30foundation · easy

   Which categorization approach is inappropriate for a portfolio that aims to balance risk and reward?

   • ACategorizing initiatives by strategic theme, such as 'market expansion' or 'cost reduction'.
   • BCategorizing initiatives by risk level (low, medium, high).
   • CCategorizing initiatives by expected financial return.
   • DCategorizing initiatives by the color of the project logo.
   Reveal Solution Discussion Select an answer first