Task 5 PFMP Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A portfolio risk manager has developed risk responses for the top risks in the portfolio. To ensure the responses are actually implemented, which action should the risk manager take?

   • AAssign each response to a risk owner and integrate the response activities into the relevant project plans and portfolio processes.
   • BCommunicate the responses to the steering committee for approval and then archive them.
   • CDocument the responses in the risk register and assume that project managers will implement them as needed.
   • DAdd the responses to the portfolio's risk management plan as an appendix.
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2. 12foundation · easy

   What is the purpose of qualitative risk analysis at the portfolio level?

   • ATo prioritize risks based on their probability and impact using subjective or relative scales
   • BTo eliminate all risks from the portfolio
   • CTo assign a risk owner for each risk
   • DTo calculate the exact monetary value of each risk
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4. 13foundation · easy

   Which component is typically included in a portfolio risk management plan?

   • AThe detailed work breakdown structure for each component
   • BA complete list of all identified risks with their scores
   • CRisk categories and definitions of probability and impact
   • DThe financial close-out procedures for completed components
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5. 14expert · medium

   A portfolio includes a high-priority project that is critical to the organization's strategic goals. The project has a risk of a key supplier failing to deliver a critical component, which would delay the project by six months. The portfolio risk manager has identified this risk and is considering responses. The portfolio has a limited budget, and the project cannot be delayed. Which response strategy is most appropriate?

   • AAccept the risk because the supplier has a good track record.
   • BTransfer the risk by purchasing insurance that covers the cost of the delay.
   • CAvoid the risk by canceling the project and reallocating resources to other projects.
   • DMitigate the risk by identifying and qualifying a backup supplier, even though it will cost $200,000.
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6. 15expert · medium

   A portfolio risk manager is identifying risks for a portfolio that includes projects in different geographic regions. The portfolio is subject to currency exchange rate fluctuations, political instability in one region, and varying regulatory environments. Which technique is most effective for identifying risks that arise from these external factors?

   • AAnalyzing the portfolio's historical performance data to identify trends.
   • BConducting a PESTLE analysis to identify political, economic, social, technological, legal, and environmental risks.
   • CInterviewing each project manager individually about their project's risks.
   • DReviewing the risk registers of similar projects from other organizations in the industry.
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