Task 4 PFMP Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   How does portfolio governance ensure compliance with policies and regulations?

   • ABy establishing and enforcing governance policies and procedures that incorporate regulatory requirements
   • BBy avoiding any activities that could be considered risky
   • CBy relying solely on the organization's legal department
   • DBy delegating all compliance responsibilities to external auditors
   Reveal Solution Discussion Select an answer first
2. 17foundation · easy

   What is the primary purpose of communication and reporting in portfolio governance?

   • ATo document every decision made by the governance board
   • BTo replace the need for face-to-face meetings
   • CTo satisfy the requirements of external auditors only
   • DTo keep stakeholders informed about portfolio status and governance decisions
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   An organization is establishing a portfolio governance framework. The CEO wants the framework to ensure that all portfolio decisions align with the corporate strategy, but also wants to empower business unit leaders to make quick decisions on their own initiatives. What is the best way to balance these needs?

   • ARequire that all decisions, regardless of size, be approved by the PRB to ensure alignment.
   • BAllow business unit leaders to approve all their initiatives, and have the PRB review the portfolio only at the annual strategic planning session.
   • CDefine a governance framework that includes a clear escalation path and decision rights, specifying which decisions can be made at the business unit level and which must go to the PRB.
   • DCreate a separate governance framework for each business unit to reflect their unique needs.
   Reveal Solution Discussion Select an answer first
5. 19expert · hard

   A portfolio manager is preparing the quarterly governance report for the PRB. The report includes a summary of portfolio performance, risks, and decisions made. The PRB chair has asked for a more concise report that focuses on exceptions and decisions needed. The portfolio manager must balance the need for transparency with the chair's request for brevity. What should the portfolio manager do?

   • ASend only the executive summary and omit the detailed appendix to keep the report short.
   • BSend the full detailed report to the PRB as usual, because transparency is more important than brevity.
   • CCreate a two-page executive summary that highlights key performance indicators, major risks, and decisions required, with a detailed appendix for those who want more depth.
   • DAsk the PRB chair to decide what to include in the report.
   Reveal Solution Discussion Select an answer first
6. 20foundation · easy

   In portfolio governance, what is the primary role of the portfolio review board?

   • ATo manage the organization's financial accounts
   • BTo provide strategic direction and approve changes to the portfolio
   • CTo develop detailed project plans for each component
   • DTo execute the day-to-day activities of portfolio components
   Reveal Solution Discussion Select an answer first