A portfolio manager has implemented risk responses for a portfolio of construction projects. Six months later, the manager needs to ensure that the risk environment is still being monitored and that responses are effective. What is the most appropriate action?

Re-analyze all risks from scratch using quantitative methods to ensure accuracy.

Conduct periodic risk reviews with project managers to assess the effectiveness of responses and identify new risks.

Update the risk register only when a risk materializes.

Rely on the project managers to report risks without a formal process.

In the context of portfolio risk analysis, what does 'interdependency' refer to?

The relationship between risks that may affect each other's likelihood or impact

The selection of risk response strategies

The documentation of risks in a risk register

The process of assigning a risk owner

A portfolio manager is leading a portfolio of projects in a volatile market. The manager needs to identify risks that could affect the portfolio's objectives. Which of the following are appropriate techniques for identifying portfolio risks? Select all that apply.

Using a risk breakdown structure to categorize potential risks.

Calculating the expected monetary value of each risk.

Conducting brainstorming sessions with stakeholders from all projects.

Reviewing historical data from similar past portfolios.

Performing a SWOT analysis of the portfolio's strengths, weaknesses, opportunities, and threats.

What does the risk response strategy of 'transfer' involve?

Accepting the risk without action

Shifting the impact of a risk to a third party

Reducing the likelihood of the risk

PMIPortfolio Management Professional (PfMP)

Domain 4Objective 1

Task 1 PFMP Practice Questions (Page 2)

Part of the Portfolio Risk Management domain, which accounts for 15% of the PFMP exam. PMI does not publish an official question count, but from its 240-minute exam (~95–160 total, ~14–24 in this domain), expect 2–4 from this objective — we provide 26 practice questions to prepare you well beyond it. (estimate)

26questions here

6free pages

6concepts

15%of the exam

Questions 6–10

6application · medium
A portfolio manager has implemented risk responses for a portfolio of construction projects. Six months later, the manager needs to ensure that the risk environment is still being monitored and that responses are effective. What is the most appropriate action?
Select an answer first
7foundation · easy
Which of the following is a recognized risk response strategy for addressing prioritized risks?
Select an answer first
8foundation · easy
In the context of portfolio risk analysis, what does 'interdependency' refer to?
Select an answer first
9expert · hard · select all that apply
A portfolio manager is leading a portfolio of projects in a volatile market. The manager needs to identify risks that could affect the portfolio's objectives. Which of the following are appropriate techniques for identifying portfolio risks? Select all that apply.
Select an answer first
10foundation · easy
What does the risk response strategy of 'transfer' involve?
Select an answer first

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