Task 4 PFMP Practice Questions (Page 6)

Questions 26–30

1. 26foundation · easy

   What is the purpose of establishing governance processes and procedures?

   • ATo guarantee that all portfolio components are completed successfully
   • BTo ensure consistent and transparent decision-making across the portfolio
   • CTo eliminate the need for stakeholder communication
   • DTo replace the need for portfolio managers
   Reveal Solution Discussion Select an answer first
2. 27expert · hard

   A portfolio review board is responsible for approving components, but the board members have conflicting interests. One member is the sponsor of a component that is competing for funding with another component. The portfolio manager is concerned about a conflict of interest. What should the portfolio manager do?

   • AAllow the board member to participate in the decision because they have the most knowledge about the component.
   • BRequire the board member to disclose the conflict and recuse themselves from the decision on the component they sponsor.
   • CLet the portfolio manager make the decision instead of the board to avoid the conflict.
   • DAsk the board member to vote but not to participate in the discussion.
   Reveal Solution Discussion Select an answer first
4. 28expert · hard

   A portfolio manager is reporting to the PRB on portfolio performance. The portfolio has a strategic objective to 'improve customer satisfaction'. The current KPI for this objective is 'number of customer complaints', which has decreased by 10% this quarter. However, a recent customer survey shows that overall satisfaction has declined. The PRB is confused by the conflicting data. What should the portfolio manager do?

   • AReport only the KPI that shows improvement to avoid confusing the PRB.
   • BIgnore the survey because the KPI is the official metric.
   • CChange the KPI immediately to the customer survey score without consulting the PRB.
   • DPresent both metrics to the PRB, explain the discrepancy, and recommend a review of the KPI to ensure it accurately measures customer satisfaction.
   Reveal Solution Discussion Select an answer first
5. 29application · medium

   A portfolio governance framework has been in place for two years. The portfolio manager notices that the PRB rarely questions the recommendations presented, and that some decisions seem to be made without full consideration of alternatives. What should the portfolio manager do to improve the effectiveness of governance?

   • AConduct a review of governance practices, including a survey of PRB members, to identify barriers to effective decision-making and implement improvements.
   • BAdd more members to the PRB to bring in diverse perspectives.
   • CRequire the portfolio manager to make all recommendations final to reduce the need for discussion.
   • DShorten the PRB meetings to force quicker decisions.
   Reveal Solution Discussion Select an answer first
6. 30foundation · easy

   Which approach is commonly used to support continuous improvement of governance practices?

   • AWaiting for external audits to identify issues
   • BAvoiding any changes to governance procedures
   • CConducting periodic reviews of governance processes and outcomes
   • DDelegating improvement to a single individual
   Reveal Solution Discussion Select an answer first