Task 4 PFMP Practice Questions (Page 6)

Questions 26–28

1. 26foundation · easy

   What is the primary purpose of prioritizing portfolio risks?

   • ATo focus resources on the most significant risks
   • BTo satisfy regulatory requirements
   • CTo document risks for audit purposes
   • DTo eliminate all risks
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   A portfolio manager has developed a risk response to mitigate a key supplier risk by identifying alternative suppliers. What should the portfolio manager do to implement this response effectively?

   • AAllocate budget and resources to qualify and contract the alternative suppliers, and integrate this action into the portfolio plan.
   • BMonitor the primary supplier's performance and only activate alternatives if the risk materializes.
   • CDocument the response in the risk register and wait for the risk to occur before taking action.
   • DInform the initiative managers about the alternative suppliers and let them decide whether to use them.
   Reveal Solution Discussion Select an answer first
3. 28application · medium

   During a quarterly portfolio review, a portfolio manager notices that a previously low-priority risk has increased in likelihood due to market changes. The risk now threatens a strategic objective. What should the portfolio manager do?

   • ATransfer the risk to the initiative managers to handle.
   • BKeep the risk at its current priority because it was assessed at the beginning of the year.
   • CRemove the risk from the register because it was previously low priority.
   • DRe-prioritize the risk and consider developing a response if it now exceeds the risk threshold.
   Reveal Solution Discussion Select an answer first