What is the main goal of reviewing portfolio risks?

To document risks for historical purposes

To adjust strategies to maintain alignment with portfolio objectives

To assign blame for risk occurrences

A portfolio manager has identified two risks: Risk A has a high likelihood and moderate impact, and Risk B has a low likelihood but very high impact. The portfolio has limited resources for risk responses. How should the portfolio manager prioritize these risks?

Prioritize based on the product of likelihood and impact, and also consider strategic alignment.

Prioritize both risks equally because they are both significant.

Prioritize Risk A because it is more likely to occur.

Prioritize Risk B because its impact is very high.

What is a key activity in implementing portfolio risk responses?

Allocating resources to execute the planned responses

Updating the risk management plan

Conducting a risk review meeting

When reviewing portfolio risks, what should be considered to determine if strategy adjustments are needed?

Changes in the portfolio's strategic objectives

PMIPortfolio Management Professional (PfMP)

Domain 4Objective 4

Task 4 PFMP Practice Questions (Page 1)

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 28 practice questions to prepare you well beyond it. (estimate)

28questions here

6free pages

7concepts

15%of the exam

Questions 1–5

1foundation · easy
What is the main goal of reviewing portfolio risks?
Select an answer first
2expert · hard
A portfolio manager has identified two risks: Risk A has a high likelihood and moderate impact, and Risk B has a low likelihood but very high impact. The portfolio has limited resources for risk responses. How should the portfolio manager prioritize these risks?
Select an answer first
3foundation · easy
Which of the following is a recognized risk response strategy for a negative risk (threat)?
Select an answer first
4foundation · easy
What is a key activity in implementing portfolio risk responses?
Select an answer first
5foundation · easy
When reviewing portfolio risks, what should be considered to determine if strategy adjustments are needed?
Select an answer first

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