A portfolio risk response plan includes a mitigation action to upgrade a critical system. The upgrade is behind schedule, and the risk it mitigates is increasing in likelihood. The portfolio manager has limited resources. What should the portfolio manager do?

Implement a temporary workaround to reduce the risk until the upgrade is complete

Reallocate resources from lower-priority programs to accelerate the upgrade

Continue with the current timeline and hope the risk does not materialize

Cancel the upgrade and accept the risk

A portfolio risk response to mitigate a compliance risk has been implemented. The portfolio manager needs to communicate the outcome to the legal department and the program sponsors. What is the best approach?

Wait until the next annual report to communicate the outcome

Send the same detailed report to both groups

Tailor the communication to each group's interests and needs

Only communicate with the legal department because they are the experts

A portfolio risk response plan includes a contingency action to activate a backup supplier if the primary supplier fails. The portfolio manager is reviewing the plan and finds that the backup supplier has not been contacted in over a year. What should the portfolio manager do?

Document the lack of contact and move on

Assume the backup supplier is still available because the contract is in place

Contact the backup supplier to confirm their availability and capacity

Remove the contingency response because it is not being maintained

A portfolio risk response to mitigate a financial risk has been implemented, and the risk is now under control. The portfolio manager needs to communicate this to the portfolio review board. What is the most important information to include?

The detailed technical steps of the response implementation

The outcome of the response and the current risk status

The names of the team members who implemented the response

The cost of implementing the response

Why is timely communication of risk response activities important in portfolio management?

It is required only when a risk response fails

It guarantees that all risks will be eliminated

It ensures that stakeholders are aware of actions taken and can provide input or support

It allows the portfolio manager to avoid accountability for risk outcomes

PMIPortfolio Management Professional (PfMP)

Domain 4Objective 2

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

25questions here

5free pages

4concepts

15%of the exam

Questions 21–25

21expert · hard
A portfolio risk response plan includes a mitigation action to upgrade a critical system. The upgrade is behind schedule, and the risk it mitigates is increasing in likelihood. The portfolio manager has limited resources. What should the portfolio manager do?
Select an answer first
22application · medium
A portfolio risk response to mitigate a compliance risk has been implemented. The portfolio manager needs to communicate the outcome to the legal department and the program sponsors. What is the best approach?
Select an answer first
23expert · hard
A portfolio risk response plan includes a contingency action to activate a backup supplier if the primary supplier fails. The portfolio manager is reviewing the plan and finds that the backup supplier has not been contacted in over a year. What should the portfolio manager do?
Select an answer first
24application · medium
A portfolio risk response to mitigate a financial risk has been implemented, and the risk is now under control. The portfolio manager needs to communicate this to the portfolio review board. What is the most important information to include?
Select an answer first
25foundation · easy
Why is timely communication of risk response activities important in portfolio management?
Select an answer first

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