A portfolio manager has identified a list of risks for a portfolio of IT projects. The risks include a potential data breach, a delay in a critical vendor delivery, and a change in regulatory compliance requirements. The manager needs to analyze these risks to determine their likelihood, impact, and interdependencies. Which approach best supports this analysis?

Perform a qualitative analysis using a probability-impact matrix and also assess how the risks interact with each other.

Focus on the risks with the highest impact and develop response plans for them.

Quantify the financial impact of each risk and rank them by expected monetary value.

Review the risk register and update the status of each risk based on recent project reports.

A portfolio manager has been monitoring risks for a portfolio of projects. During a review, the manager finds that a risk response that was implemented is not working as expected. The risk is still high, and the response has consumed significant resources. What is the most appropriate action?

Continue with the current response because changing it would waste the resources already invested.

Escalate the risk to senior management and ask for additional resources.

Close the risk because the response has been implemented.

Re-analyze the risk and develop a new response strategy, considering the lessons learned from the failed response.

During portfolio risk identification, which activity is most directly associated with this process?

Evaluating the effectiveness of implemented risk responses

Assigning a numerical probability to each identified risk

Selecting response strategies for the highest-priority risks

Documenting risks that could affect portfolio objectives and strategic alignment

Which activity is part of analyzing portfolio risks?

Implementing risk response plans

Monitoring the effectiveness of risk responses

Documenting risks in a risk register for the first time

Determining the likelihood and impact of identified risks

What is the main purpose of prioritizing portfolio risks?

To document risks for the first time

To eliminate all risks from the portfolio

To focus management attention on risks with the greatest potential effect on portfolio value

PMIPortfolio Management Professional (PfMP)

Domain 4Objective 1

Task 1 PFMP Practice Questions (Page 5)

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 21–25

21application · medium
A portfolio manager has identified a list of risks for a portfolio of IT projects. The risks include a potential data breach, a delay in a critical vendor delivery, and a change in regulatory compliance requirements. The manager needs to analyze these risks to determine their likelihood, impact, and interdependencies. Which approach best supports this analysis?
Select an answer first
22expert · hard
A portfolio manager has been monitoring risks for a portfolio of projects. During a review, the manager finds that a risk response that was implemented is not working as expected. The risk is still high, and the response has consumed significant resources. What is the most appropriate action?
Select an answer first
23foundation · easy
During portfolio risk identification, which activity is most directly associated with this process?
Select an answer first
24foundation · easy
Which activity is part of analyzing portfolio risks?
Select an answer first
25foundation · easy
What is the main purpose of prioritizing portfolio risks?
Select an answer first

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