Task 5 PFMP Practice Questions (Page 2)

Questions 6–10

1. 6application · medium

   A portfolio manager is leading the annual risk identification workshop for a portfolio of 15 projects. The organization has a mature risk management culture, and each project team has already submitted their individual project risk registers. The portfolio steering committee wants to ensure that risks arising from the interaction of projects—such as shared resources, dependencies, and cumulative market exposure—are not overlooked. Which approach should the portfolio manager take to identify portfolio-level risks?

   • AAsk each project manager to add a section to their risk register for portfolio-level risks and then merge these sections.
   • BReview the portfolio's financial reports and key performance indicators to identify risks that have already materialized.
   • CConduct a separate portfolio-level risk identification session using techniques such as SWOT analysis, scenario analysis, and expert interviews, focusing on strategic and cross-project themes.
   • DConsolidate the project risk registers into a single portfolio risk register and treat the highest-rated project risks as portfolio risks.
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2. 7foundation · easy

   Which risk response strategy is used to increase the probability or impact of a positive risk (opportunity)?

   • AEnhance
   • BAvoid
   • CTransfer
   • DMitigate
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4. 8expert · medium

   A portfolio risk manager has implemented a risk response that involves reallocating resources from a lower-priority project to a higher-priority project to mitigate a critical risk. The lower-priority project is now at risk of missing its deadline. What should the risk manager do?

   • AEscalate the issue to the steering committee and let them decide.
   • BReverse the reallocation to avoid the new risk to the lower-priority project.
   • CAccept the new risk to the lower-priority project because the higher-priority project is more important.
   • DUpdate the risk register with the new risk and develop a response for the lower-priority project.
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5. 9application · medium

   A portfolio risk manager has identified a risk that a new regulation could affect several projects in the portfolio. The regulation's timing and content are uncertain. The portfolio manager needs to understand the potential impact on the portfolio's objectives. Which analysis technique is most appropriate?

   • APerform a qualitative analysis by rating the risk's probability and impact using a predefined scale.
   • BAsk each project manager to estimate the impact on their project and sum the estimates.
   • CWait until the regulation is finalized before analyzing the risk.
   • DConduct a quantitative analysis using Monte Carlo simulation to model the range of possible impacts on portfolio objectives.
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6. 10application · medium

   A portfolio risk manager has implemented risk responses for several key risks. The portfolio steering committee wants to know if the responses are working and if any new risks have emerged. Which action should the risk manager take to monitor and control portfolio risks?

   • AAsk each project manager to report on their project risks and assume portfolio risks are being managed.
   • BRe-analyze all portfolio risks from scratch to ensure the risk register is current.
   • CTrack predefined risk indicators and review the risk register at defined intervals, updating it with new risks and response effectiveness.
   • DWait until the next quarterly portfolio review to assess the effectiveness of the responses.
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