A pharmaceutical company has categorized its portfolio into 'Research' and 'Commercialization'. The company has a limited R&D budget and a high risk appetite for breakthrough innovations. The portfolio office has prioritized the initiatives, but the top-priority research project is very risky and would consume most of the R&D budget. The CEO wants to maximize long-term value. What should the portfolio office do?

Re-categorize the portfolio to put the risky project in a separate category.

Defer all research projects and focus on commercialization to reduce risk.

Fund only the top-priority project because it has the highest potential value.

Balance the portfolio by including a mix of high-risk, high-reward and lower-risk projects within the research category.

MoP Practitioner

Domain 5Objective 1

Know Facts, Terms and Concepts Relating to the Portfolio Definition Cycle MOP-PRACTITIONER Practice Questions (Page 1)

Part of the Portfolio definition cycle domain, which makes up ~23% of our current practice bank.

26questions here

6free pages

6concepts

Questions 1–5

1foundation · easy
Which practice is responsible for ensuring the portfolio mix aligns with capacity and risk appetite?
Select an answer first
2foundation · easy
Which practice uses agreed criteria to rank programs and projects within categories?
Select an answer first
3expert · hard
A pharmaceutical company has categorized its portfolio into 'Research' and 'Commercialization'. The company has a limited R&D budget and a high risk appetite for breakthrough innovations. The portfolio office has prioritized the initiatives, but the top-priority research project is very risky and would consume most of the R&D budget. The CEO wants to maximize long-term value. What should the portfolio office do?
Select an answer first
4foundation · easy
In the portfolio definition cycle, which practice groups programs and projects to support analysis?
Select an answer first
5foundation · easy
Which practice is responsible for analyzing organizational objectives and constraints to inform portfolio definition?
Select an answer first

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Know Facts, Terms and Concepts Relating to the Portfolio Definition Cycle MOP-PRACTITIONER Practice Questions (Page 1)

Questions 1–5

Which practice is responsible for ensuring the portfolio mix aligns with capacity and risk appetite?

Which practice uses agreed criteria to rank programs and projects within categories?

In the portfolio definition cycle, which practice groups programs and projects to support analysis?

Which practice is responsible for analyzing organizational objectives and constraints to inform portfolio definition?

Keep studying — Portfolio definition cycle