Task 1 PFMP Practice Questions (Page 1)

Questions 1–5

1. 1expert · hard

   A program manager has identified a significant risk that could affect multiple projects in the portfolio. The risk is beyond the program manager's authority to mitigate. The governance framework has a defined escalation path. However, the portfolio review board is not scheduled to meet for another month. What should the program manager do?

   • AAttempt to mitigate the risk within the program despite lacking authority.
   • BWait for the next scheduled board meeting to present the risk.
   • CEscalate the risk immediately to the portfolio manager or board chair using the defined escalation path, even if it requires an ad-hoc meeting.
   • DDocument the risk and include it in the next monthly report.
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2. 2application · medium

   A portfolio manager must select projects for the upcoming fiscal year. The organization has limited resources and multiple strategic objectives. The governance framework requires that decisions be data-driven and traceable. Which approach best meets this requirement?

   • AUse a weighted scoring model that aligns with strategic objectives and document the results for each candidate project.
   • BDistribute resources equally across all strategic objectives without prioritization.
   • CChoose projects that have the highest expected ROI regardless of strategic alignment.
   • DSelect projects based on the personal judgment of the most senior executives.
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4. 3expert · hard

   A portfolio manager is faced with a sudden budget cut. The governance framework requires that the portfolio be rebalanced to stay within the new budget while maximizing strategic value. The portfolio includes several large, long-term projects and many small, short-term ones. What is the best approach?

   • ACut all large, long-term projects because they consume the most budget.
   • BCut all small, short-term projects because they are easier to stop.
   • CUse a prioritization model to rank all components by strategic value and cost, then cut the lowest-ranked components regardless of size.
   • DReduce the budget of every project by the same percentage.
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5. 4foundation · easy

   Which statement best describes portfolio governance?

   • AA framework of practices and principles that guides portfolio decisions and oversight
   • BA financial accounting method for portfolio budgeting
   • CA set of processes for managing individual project schedules
   • DA tool for tracking team member performance
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6. 5expert · hard

   A company's strategic plan includes two equally important objectives: expanding into a new market and improving operational efficiency. The portfolio has limited resources, and the governance board must decide how to allocate resources. The board is split between funding more market-expansion projects and more efficiency projects. What is the most appropriate governance decision?

   • AAllocate resources to achieve a balanced portfolio that addresses both objectives, using a scoring model that weights them equally.
   • BFund only market-expansion projects to maximize growth potential.
   • CFund only efficiency projects to reduce costs and improve margins.
   • DDelay all decisions until the next strategic planning cycle.
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