Task 4 PFMP Practice Questions (Page 1)

Questions 1–5

1. 1expert · hard

   A portfolio governance framework has been criticized for being too bureaucratic, causing delays in component approvals. At the same time, a recent audit found that some components were approved without proper risk assessment. The portfolio manager needs to improve the governance process to address both issues. What should the portfolio manager do?

   • ARequire all components to undergo a full risk assessment, but delegate the approval to the portfolio manager to speed up the process.
   • BRedesign the governance process to include a risk-based triage that fast-tracks low-risk components while ensuring high-risk components undergo full assessment, and pilot the new process before full rollout.
   • CSimplify the process by removing the risk assessment requirement for all components to speed up approvals.
   • DIncrease the frequency of PRB meetings to reduce delays, but keep the current process unchanged.
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   What is the primary purpose of a portfolio governance framework?

   • ATo replace the need for project management offices
   • BTo provide a structure for decision-making and oversight that aligns portfolio activities with organizational strategy
   • CTo ensure all projects are completed on time and within budget
   • DTo guarantee that all portfolio risks are eliminated
   Reveal Solution Discussion Select an answer first
4. 3application · medium

   A portfolio manager is reviewing the monthly performance report and notices that several components are on track for their individual KPIs, but the portfolio as a whole is not contributing to the organization's strategic objective of increasing market share. The PRB is confused because each component looks healthy. What should the portfolio manager do first?

   • ARe-evaluate the portfolio's component mix and their alignment to the strategic objective, considering whether the current set of KPIs truly measures market share contribution.
   • BAsk each component manager to add more aggressive KPIs to their individual plans.
   • CReport to the PRB that the portfolio is performing well because all components are meeting their targets.
   • DImmediately terminate the component with the lowest KPI performance to reallocate budget to other initiatives.
   Reveal Solution Discussion Select an answer first
5. 4foundation · easy

   What is the purpose of continuous improvement in portfolio governance?

   • ATo enhance the effectiveness and efficiency of governance practices over time
   • BTo eliminate all governance processes
   • CTo reduce the number of stakeholders involved in governance
   • DTo ensure that governance practices remain unchanged
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   Which of the following is an example of a governance control mechanism?

   • AIndividual team member performance appraisals
   • BMarketing campaign analysis
   • CPortfolio-level performance reviews and stage-gate approvals
   • DDaily status meetings for project teams
   Reveal Solution Discussion Select an answer first