Task 5 PFMP Practice Questions (Page 5)

Questions 21–25

1. 21expert · hard

   A portfolio has several components that are underperforming. The governance framework includes a stage-gate review process. The portfolio manager has data showing that one component, though currently underperforming, is critical for a future strategic initiative. What should the governance board do?

   • AApprove additional funding without changing targets.
   • BContinue the component with revised targets and increased monitoring, while documenting the strategic rationale.
   • CTerminate the component immediately to avoid further losses.
   • DPut the component on hold until it meets its original targets.
   Reveal Solution Discussion Select an answer first
2. 22expert · hard

   A governance board has been using the same decision criteria for three years. The portfolio manager believes the criteria no longer reflect the company's current strategy. What is the most effective way to update the criteria?

   • AConduct a workshop with project managers to update the criteria.
   • BUse the old criteria but add a note about the new strategy.
   • CSilently adjust the scoring model to reflect the new strategy.
   • DPropose a review of the decision criteria to the board, linking each criterion to the current strategic objectives.
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   What is the primary purpose of monitoring portfolio performance against strategic objectives?

   • ATo ensure the portfolio is on track to deliver the expected strategic benefits
   • BTo track the number of meetings held by the governance board
   • CTo calculate the exact salary of each project team member
   • DTo replace the need for individual project status reports
   Reveal Solution Discussion Select an answer first
5. 24expert · hard

   A portfolio is not meeting its strategic objectives, but the KPIs reported to the board are all green. The portfolio manager suspects the KPIs are not measuring the right things. What is the most appropriate action?

   • AChange the KPIs to more favorable metrics.
   • BConduct a review of the KPI set to ensure each KPI is directly linked to a strategic objective and is measurable.
   • CIgnore the KPIs and rely on qualitative assessments.
   • DReport the discrepancy to the board and ask for more resources.
   Reveal Solution Discussion Select an answer first
6. 25application · medium

   A portfolio component is experiencing significant cost overruns and missed milestones. The project manager has escalated the issue to the portfolio manager. According to good governance practice, what should the portfolio manager do next?

   • AAssign a new project manager to improve performance.
   • BApprove additional funding to keep the component on track.
   • CTerminate the component immediately to prevent further losses.
   • DEscalate the issue to the portfolio review board with an analysis of the impact on portfolio objectives and recommended options.
   Reveal Solution Discussion Select an answer first