Task 4 PFMP Practice Questions (Page 2)

Questions 6–10

1. 6expert · hard

   A portfolio manager has developed a risk response to mitigate a regulatory risk by implementing a compliance program across all initiatives. The program requires significant resources and will take six months to implement. The regulatory deadline is in four months. What should the portfolio manager do?

   • AImplement the program only in the initiatives that are most at risk.
   • BImplement the compliance program as planned, but accelerate the timeline by allocating additional resources.
   • CCancel the compliance program and accept the regulatory risk.
   • DDelay the implementation until after the regulatory deadline to avoid disrupting initiatives.
   Reveal Solution Discussion Select an answer first
2. 7application · medium

   A portfolio manager has identified a risk that a new regulation could affect several initiatives. The risk has a high likelihood and high impact. The portfolio has limited resources for risk responses. What should the portfolio manager do?

   • ADevelop a response that addresses the risk across all affected initiatives, such as a compliance program.
   • BAccept the risk because the portfolio cannot afford to respond.
   • CTransfer the risk by outsourcing the compliance work to a third party.
   • DLet each initiative manager develop their own response to the regulation.
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   What is the primary purpose of monitoring portfolio risks?

   • ATo assign risk owners
   • BTo track the risk environment and evaluate the effectiveness of responses
   • CTo identify all risks at the start of the portfolio
   • DTo eliminate all risks from the portfolio
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5. 9expert · hard

   A portfolio manager is monitoring risks for a portfolio that includes a high-risk innovation initiative and several stable operational initiatives. The innovation initiative has a risk that could cause a significant financial loss. The portfolio manager notices that the risk's likelihood has increased due to a change in the market. What should the portfolio manager do?

   • ARe-analyze the risk and update its priority in the risk register.
   • BEscalate the risk to the initiative manager to handle.
   • CClose the risk because it has been monitored.
   • DKeep the risk's priority unchanged because it was assessed at the beginning of the year.
   Reveal Solution Discussion Select an answer first
6. 10application · medium

   During a portfolio review, a portfolio manager finds that a risk response for a supply chain risk is not working as expected. The risk is still high and could affect several initiatives. What should the portfolio manager do?

   • AIncrease the budget for the existing response to make it work.
   • BEscalate the risk to the project managers and let them handle it.
   • CRemove the risk from the register because the response was implemented.
   • DAnalyze why the response is not working and develop an alternative response.
   Reveal Solution Discussion Select an answer first