Task 1 PFMP Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A portfolio manager is reviewing the portfolio of a multinational retail company that is expanding into three new countries simultaneously. Each country has different regulatory environments, currency risks, and supply chain dependencies. The portfolio manager needs to identify and document risks that could affect the portfolio's objectives and strategic alignment. What is the most appropriate first step?

   • AAssign a risk owner for each country to monitor risks during implementation.
   • BImmediately prioritize the risks based on the potential financial impact to the portfolio.
   • CConduct a structured risk identification workshop with key stakeholders from each country to capture risks across the portfolio.
   • DDevelop risk responses for the most obvious risks, such as currency fluctuations and regulatory changes.
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2. 12foundation · easy

   During portfolio risk monitoring, what should be updated as needed?

   • AThe portfolio charter
   • BRisk information
   • CThe risk management plan
   • DThe organizational strategy
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4. 13foundation · easy

   Which factor is most important when prioritizing portfolio risks?

   • AThe potential effect on portfolio value and strategic goals
   • BThe number of risks identified
   • CThe risk owner's preference
   • DThe ease of documenting the risk
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5. 14application · medium

   A portfolio manager has prioritized a risk of a key supplier going out of business, which would severely impact multiple projects in the portfolio. The risk has a high likelihood and high impact. The portfolio manager needs to develop a risk response strategy. Which response strategy is most appropriate for this risk?

   • ATransfer the risk by signing a contract with an alternative supplier as a backup.
   • BAccept the risk and document it in the risk register without any action.
   • CAvoid the risk by canceling all projects that depend on this supplier.
   • DMitigate the risk by developing a dual-sourcing strategy and maintaining safety stock.
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6. 15expert · hard

   A portfolio manager is leading a portfolio of projects in a highly regulated industry. The portfolio includes projects with different risk appetites and strategic priorities. During a risk identification workshop, stakeholders from different projects identify conflicting risks: one project sees a new regulation as a threat, while another sees it as an opportunity. The portfolio manager needs to ensure that risks are identified and documented consistently. What is the most appropriate approach?

   • ADocument the risk as a threat only, since it is a regulatory change.
   • BPrioritize the threat perspective because threats are more critical than opportunities.
   • CDocument both perspectives in the risk register, noting the potential threat and opportunity, and analyze them together.
   • DAsk the project managers to resolve the conflict before documenting the risk.
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