A portfolio manager is developing the portfolio risk management plan. The organization has a low risk appetite, but individual project managers have historically been overly optimistic in their risk assessments. The portfolio manager wants to ensure that the plan addresses this bias. Which component should the portfolio manager include in the plan?

A policy that all risks must be rated as high probability to ensure they are not underestimated.

A requirement for all risks to be assessed by an independent risk review board.

A defined risk assessment scale with clear criteria for probability and impact, and a requirement for calibration workshops.

A requirement that project managers sign off on their risk assessments to ensure accountability.

What is the primary purpose of monitoring and controlling portfolio risks?

To develop the portfolio risk management plan

To identify all risks at the beginning of the portfolio

To close the portfolio and release all resources

To track risk indicators and review the effectiveness of risk responses

What is the primary purpose of implementing risk responses in portfolio management?

To update the portfolio risk management plan

To identify new risks that were not previously considered

To close out the portfolio and archive all documents

To execute the planned risk response actions and integrate them into portfolio processes

A portfolio risk manager has identified and analyzed 40 risks across a portfolio of 20 projects. The portfolio has a limited risk response budget and a fixed resource pool. The steering committee needs to decide which risks to address first. Which approach should the risk manager use to prioritize the risks?

Assign all risks to the portfolio's risk response budget equally, ensuring every risk gets some attention.

Rank risks solely by their probability score, from highest to lowest.

Prioritize risks based on the project manager's urgency rating for each risk.

Rank risks by their expected monetary value (EMV) and then adjust for the portfolio's risk appetite and resource constraints.

PMIPortfolio Management Professional (PfMP)

Domain 4Objective 5

Task 5 PFMP Practice Questions (Page 1)

Part of the Portfolio Risk Management domain, which accounts for 15% of the PFMP exam. PMI does not publish an official question count, but from its 240-minute exam (~95–160 total, ~14–24 in this domain), expect 2–4 from this objective — we provide 32 practice questions to prepare you well beyond it. (estimate)

32questions here

7free pages

8concepts

15%of the exam

Questions 1–5

1expert · medium
A portfolio manager is developing the portfolio risk management plan. The organization has a low risk appetite, but individual project managers have historically been overly optimistic in their risk assessments. The portfolio manager wants to ensure that the plan addresses this bias. Which component should the portfolio manager include in the plan?
Select an answer first
2foundation · easy
What is the primary purpose of monitoring and controlling portfolio risks?
Select an answer first
3foundation · easy
What is the primary purpose of implementing risk responses in portfolio management?
Select an answer first
4application · medium
A portfolio risk manager has identified and analyzed 40 risks across a portfolio of 20 projects. The portfolio has a limited risk response budget and a fixed resource pool. The steering committee needs to decide which risks to address first. Which approach should the risk manager use to prioritize the risks?
Select an answer first
5foundation · easy
Which strategy is appropriate for a negative risk (threat) that the portfolio team decides to accept?
Select an answer first

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Task 5 PFMP Practice Questions (Page 1)

Questions 1–5

What is the primary purpose of monitoring and controlling portfolio risks?

What is the primary purpose of implementing risk responses in portfolio management?

Which strategy is appropriate for a negative risk (threat) that the portfolio team decides to accept?

Keep studying — Portfolio Risk Management