Task 3 PFMP Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   Which of the following is a key consideration when implementing risk responses in a portfolio?

   • AImplementing responses only after all components are completed
   • BKeeping risk response implementation confidential from stakeholders
   • CCoordinating with component-level activities to ensure alignment
   • DAvoiding any changes to the portfolio's resource allocation
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2. 12application · medium

   A portfolio manager has implemented a risk response to mitigate a key portfolio risk. After three months, the risk score has not improved as expected, and the response is consuming significant resources. What should the portfolio manager do?

   • AAnalyze the variance and adjust the response strategy to improve effectiveness.
   • BDiscontinue the response and accept the risk, since it is not working.
   • CReport the lack of progress to stakeholders and ask for their decision.
   • DContinue the response as planned, since the risk may still be mitigated over a longer period.
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4. 13foundation · easy

   Which element is essential for effective risk communication and reporting in a portfolio?

   • ACommunicating only to senior management
   • BReporting only positive outcomes to maintain stakeholder confidence
   • CUsing technical jargon to demonstrate expertise
   • DProviding accurate and timely information on risk response outcomes
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5. 14expert · hard

   A portfolio risk response requires a significant change in resource allocation across multiple components. The change is controversial, and some component managers are resisting. The portfolio manager must implement the response while maintaining stakeholder support. What is the most effective approach?

   • AImplement the change immediately and address resistance after the fact.
   • BEscalate the issue to the governance board to force the change.
   • CModify the response to avoid the controversial resource changes.
   • DCommunicate the rationale and benefits of the change to all stakeholders before implementation.
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6. 15expert · hard

   A portfolio manager is reporting on risk response status to a governance committee. The committee is concerned about the cost of the responses and wants to see a cost-benefit analysis. What is the most effective way to present this information?

   • APresent the risk responses that were not implemented due to cost constraints.
   • BPresent only the total cost of all responses, without individual details.
   • CPresent the cost of each response and the expected benefit in terms of risk reduction.
   • DPresent the qualitative benefits of the responses, without cost data.
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