Task 2 PFMP Practice Questions (Page 7)

Questions 31–35

1. 31application · medium

   A portfolio governance framework is being established. The portfolio manager needs to ensure that the right people are involved in governance decisions. Which action best ensures that all relevant perspectives are considered?

   • ARely on the portfolio manager to make all governance decisions based on their expertise.
   • BCreate a stakeholder map that identifies all parties affected by or able to influence the portfolio, and assign them specific governance roles.
   • CInvite all stakeholders to every governance meeting to ensure full transparency.
   • DLimit governance participation to senior executives to speed up decision-making.
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2. 32expert · hard

   A portfolio governance board has been in place for two years. The portfolio manager notices that the board's decisions are often not implemented as intended. What is the most likely cause and the best action to address it?

   • AThe decisions are not communicated clearly; send more detailed meeting minutes.
   • BThe board meets too frequently; reduce the meeting frequency.
   • CThe board members are not senior enough; replace them with more senior executives.
   • DThe governance framework lacks a feedback loop to monitor implementation and adjust processes; implement a post-decision review process.
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4. 33application · medium

   A portfolio manager is designing a decision-making process for resource allocation across projects. The process must be transparent and ensure that resources are allocated to the highest-priority projects. What is the most important element to include in this process?

   • AA process where the portfolio manager decides based on intuition.
   • BA defined set of prioritization criteria that are applied consistently to all projects.
   • CA rule that resources are allocated on a first-come, first-served basis.
   • DA requirement that all projects receive equal resources.
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5. 34expert · hard

   A portfolio governance board is divided on whether to approve a high-risk, high-reward project. Some members are risk-averse, while others are more aggressive. The portfolio manager needs to facilitate a decision that is in the best interest of the portfolio. What is the best approach?

   • AReject the project because of its high risk.
   • BAsk the risk-averse members to explain their concerns and then make a decision based on the majority.
   • CApprove the project because of its high potential reward.
   • DUse a risk-adjusted scoring model that quantifies the project's potential value against its risk, and present it to the board for a vote.
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6. 35application · medium

   A portfolio governance board needs to make a decision on funding a new initiative. The board members are located in different time zones and have conflicting schedules. What is the most effective way to ensure the decision is made in a timely manner?

   • AAllow the portfolio manager to make the decision and inform the board later.
   • BUse email to collect votes from board members asynchronously.
   • CEstablish a clear decision-making process that includes a quorum requirement and a defined escalation path for urgent decisions.
   • DSchedule a series of meetings at different times to accommodate all members.
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