Task 3 PFMP Practice Questions (Page 4)

Questions 16–20

1. 16expert · hard

   A portfolio governance board is composed of executives from different departments. The board is having difficulty making decisions because members often advocate for their own department's projects rather than the portfolio's overall benefit. What is the BEST way to address this in the governance structure?

   • ARotate the board chair among departments to ensure fairness
   • BRemove departmental representatives from the board and replace them with independent experts
   • CEstablish a clear portfolio-level decision-making criteria and require members to justify decisions against them
   • DAllow each department to veto decisions that affect their projects
   Reveal Solution Discussion Select an answer first
2. 17foundation · easy

   What is the primary purpose of establishing a governance structure for portfolio management?

   • ATo create a project management methodology for the organization
   • BTo determine the budget for each project in the portfolio
   • CTo define roles, responsibilities, and decision-making authority
   • DTo assign individual tasks to project team members
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   A company's portfolio governance board is reviewing potential projects. The company's strategy has shifted from market expansion to cost optimization. Which action by the board BEST aligns portfolio decisions with the new strategy?

   • AContinue funding projects that were approved under the previous strategy to avoid disruption
   • BRe-prioritize all projects based on their contribution to cost reduction and operational efficiency
   • CAsk each project manager to justify their project's value in a written report
   • DFreeze all new project approvals until the next fiscal year
   Reveal Solution Discussion Select an answer first
5. 19application · medium

   A portfolio governance board is implementing a new project selection process. The board wants to ensure that the process is consistently applied across all business units and that decisions are documented. What is the MOST effective way to implement this process?

   • AAllow each business unit to adapt the process to their local needs
   • BConduct a one-time training session for all project managers on the new process
   • CPublish a detailed procedure manual and require all business units to follow it
   • DEstablish a centralized governance office to oversee the process and maintain decision records
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A multinational corporation is establishing a portfolio governance framework. The CEO insists that the framework must ensure that every portfolio investment directly supports at least one of the company's five strategic pillars. The CFO wants a clear escalation path for budget overruns. The CIO wants a standardized process for evaluating IT projects. Which component of the governance framework should be defined FIRST to satisfy all three executives?

   • AA detailed budget approval workflow with escalation thresholds for the CFO
   • BA list of strategic pillars and their owners
   • CA portfolio charter that documents the purpose, scope, and alignment of the portfolio with the organization's strategy
   • DA standardized IT project evaluation scorecard for the CIO
   Reveal Solution Discussion Select an answer first