Be Able to Identify, Analyse and Distinguish Between Appropriate and Inappropriate Application of Portfolio Delivery Practices and Techniques to a Scenario MOP-PRACTITIONER Practice Questions (Page 4)

Questions 16–20

1. 16application · medium

   A portfolio office has identified that a major operational stakeholder group is resistant to a new portfolio of change initiatives. The portfolio office has decided to only communicate with the stakeholder group through formal written reports and to avoid any direct engagement. What is the most appropriate assessment of this stakeholder engagement approach?

   • AAppropriate, because formal written reports provide a clear and auditable record of communication.
   • BAppropriate, because limiting engagement reduces the administrative burden on the portfolio office.
   • CInappropriate, because the approach avoids understanding the concerns of a resistant stakeholder group and may increase resistance.
   • DInappropriate, because the portfolio office should escalate the issue to the sponsor without engaging the stakeholder group.
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A portfolio finance manager is reviewing the financial performance of the portfolio. They notice that one project has overspent its budget by 20%. The project manager explains that the overspend is due to an unexpected regulatory change. What is the most appropriate portfolio-level financial management action?

   • ARequire the project manager to absorb the overspend within the project's existing budget.
   • BImmediately stop the project to prevent further overspend.
   • CIncrease the overall portfolio budget to cover the overspend without further analysis.
   • DAssess the impact of the overspend on the overall portfolio budget and consider rebalancing funds from other projects.
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4. 18application · medium

   A portfolio finance team allocates the full annual budget to initiatives at the start of the financial year. Mid-year, a new high-priority strategic initiative emerges, but there is no unallocated budget. The portfolio board is considering rejecting the initiative due to lack of funds. What is the most appropriate financial management practice to have avoided this situation?

   • ARequire all initiatives to submit a zero-based budget each year to justify every pound of spend.
   • BRetain a contingency reserve within the portfolio budget for unplanned but strategically aligned opportunities.
   • CAllocate budget to initiatives only after they have delivered their first milestone.
   • DUse a single portfolio-wide budget with no distinction between operational and capital expenditure.
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5. 19foundation · easy

   In a portfolio, management control is applied by setting tolerances for each initiative. What is the primary purpose of these tolerances?

   • ATo allow deviations within agreed limits without escalating to the portfolio level.
   • BTo define the exact scope of each initiative in detail.
   • CTo eliminate the need for portfolio-level oversight.
   • DTo ensure all initiatives have identical reporting requirements.
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6. 20expert · hard

   A portfolio has a limited pool of skilled data scientists. Two projects require these resources: Project A is a high-priority strategic initiative, and Project B is a lower-priority initiative with a contractual deadline. The data scientists are currently allocated to Project B. The portfolio office must decide how to allocate the resources. What is the most appropriate resource management decision?

   • AKeep the data scientists on Project B to meet the contractual deadline, as missing it could incur penalties.
   • BAssess the impact of both options on the portfolio, including the strategic value of Project A and the contractual penalties of Project B, before making a decision.
   • CNegotiate with the client of Project B to extend the deadline, then move the data scientists to Project A.
   • DMove the data scientists to Project A, as it is a high-priority strategic initiative.
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