Task 4 PFMP Practice Questions (Page 7)

Questions 31–32

1. 31application · medium

   After a major portfolio review, the PRB notices that decisions are taking too long because the board is reviewing every component in detail, even those with low risk and low strategic impact. The portfolio manager wants to improve the governance process. What should the portfolio manager propose?

   • AReduce the frequency of PRB meetings to give members more time to prepare.
   • BIntroduce a tiered review process where low-risk, low-impact components are approved through a streamlined path, while high-risk or high-impact components receive full PRB review.
   • CDelegate all component approvals to the portfolio manager to speed up the process.
   • DAsk the PRB to approve all components in a single batch at the end of the quarter.
   Reveal Solution Discussion Select an answer first
2. 32expert · hard

   A portfolio governance framework defines that all components must have a business case approved by the PRB before funding. A component that is already underway has encountered a critical issue: the sponsor wants to add a new scope that would increase the component's budget by 20% and extend its timeline. The sponsor argues that the change is necessary to meet a new regulatory requirement. The portfolio manager must decide how to handle this within the governance framework. What should the portfolio manager do?

   • ARequire the sponsor to submit a revised business case for the change, and present it to the PRB for approval before the new scope is funded.
   • BAllow the sponsor to proceed with the new scope using contingency funds, and report the change to the PRB at the next meeting.
   • CApprove the change immediately because it is required for regulatory compliance.
   • DTerminate the component and start a new one that includes the regulatory requirement.
   Reveal Solution Discussion Select an answer first