A portfolio risk response to mitigate a market risk was implemented, but the portfolio manager notices that the risk likelihood has increased despite the response. What should the portfolio manager do?

Increase the risk threshold to avoid further review

Close the risk because the response was implemented

Continue the current response because it was planned

Analyze why the response is not reducing the likelihood and adjust the response

A portfolio risk response plan includes a mitigation action to renegotiate a contract with a key supplier. The portfolio manager assigns this action to a program manager. What is the portfolio manager's primary responsibility during the implementation of this action?

Ensure the program manager has the authority and resources to complete the action

Remove the action from the plan if it is not completed quickly

Wait for the program manager to report completion

Renegotiate the contract personally

A portfolio has a high-impact risk of a major regulatory change that could invalidate a key product line. The change is uncertain but possible. The portfolio manager has limited budget and must choose a response. Which response is most appropriate?

Avoid the risk by discontinuing the product line now

Transfer the risk by purchasing regulatory change insurance

Accept the risk because the change is uncertain

Mitigate by investing in compliance monitoring and flexible product design

What should be communicated to stakeholders regarding risk responses in a portfolio?

Only the final outcomes of risk responses

The activities, progress, and outcomes of risk responses

The detailed technical analysis of every risk

Only the risks that have been successfully mitigated

PMIPortfolio Management Professional (PfMP)

Domain 4Objective 2

Task 2 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 25 practice questions to prepare you well beyond it. (estimate)

25questions here

5free pages

4concepts

15%of the exam

Questions 6–10

6application · medium
A portfolio risk response to mitigate a market risk was implemented, but the portfolio manager notices that the risk likelihood has increased despite the response. What should the portfolio manager do?
Select an answer first
7application · medium
A portfolio risk response plan includes a mitigation action to renegotiate a contract with a key supplier. The portfolio manager assigns this action to a program manager. What is the portfolio manager's primary responsibility during the implementation of this action?
Select an answer first
8foundation · easy
During portfolio risk response planning, the portfolio manager identifies a risk with high likelihood and high impact. Which risk response strategy is most appropriate to select for this risk?
Select an answer first
9expert · hard
A portfolio has a high-impact risk of a major regulatory change that could invalidate a key product line. The change is uncertain but possible. The portfolio manager has limited budget and must choose a response. Which response is most appropriate?
Select an answer first
10foundation · easy
What should be communicated to stakeholders regarding risk responses in a portfolio?
Select an answer first

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