Task 1 PFMP Practice Questions (Page 4)

Questions 16–20

1. 16application · easy

   A portfolio manager has a list of risks with the following characteristics: Risk A has a high likelihood and high impact on the portfolio's strategic goal. Risk B has a low likelihood but high impact on a single project. Risk C has a high likelihood but low impact on the portfolio. Risk D has a low likelihood and low impact. The portfolio manager needs to prioritize risks for response planning. Which risk should receive the highest priority?

   • ARisk B
   • BRisk C
   • CRisk A
   • DRisk D
   Reveal Solution Discussion Select an answer first
2. 17foundation · easy

   What is the primary purpose of implementing risk responses in portfolio management?

   • ATo monitor the overall portfolio performance
   • BTo analyze the likelihood and impact of risks
   • CTo identify new risks that were not previously considered
   • DTo execute the planned risk response strategies and integrate them into portfolio plans
   Reveal Solution Discussion Select an answer first
4. 18expert · hard · select all that apply

   A portfolio manager is analyzing risks for a portfolio of projects. The manager needs to determine the likelihood, impact, and interdependencies of the risks. Which of the following are appropriate analysis techniques? Select all that apply.

   • ARisk interdependency mapping
   • BRisk register updates
   • CMonte Carlo simulation
   • DSWOT analysis
   • EProbability-impact matrix
   Check answers Discussion Select an answer first
5. 19expert · hard

   A portfolio manager is analyzing risks for a portfolio of projects. The portfolio has a risk that could cause a delay in a critical project, which in turn would delay another project that depends on its deliverables. The manager needs to analyze the interdependencies of this risk. Which approach is most effective?

   • AReview the risk register to see if similar risks have occurred in the past.
   • BCalculate the expected monetary value of the risk for each project separately.
   • CAssign a probability and impact score to the risk based on the most affected project.
   • DUse a risk interdependency map to visualize how the risk propagates through the portfolio.
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A portfolio manager has implemented risk responses for a portfolio of projects. During a quarterly review, the manager notices that a previously identified risk has not materialized, but a new risk has emerged due to changes in the market. What should the portfolio manager do?

   • AClose the old risk and focus only on the new risk.
   • BUpdate the risk register with the new risk and reassess the effectiveness of existing responses.
   • CWait until the next quarterly review to address the new risk.
   • DAsk the project managers to handle the new risk individually.
   Reveal Solution Discussion Select an answer first