Task 5 PFMP Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   Which technique is used for quantitative risk analysis at the portfolio level?

   • ASWOT analysis
   • BRisk categorization
   • CChecklist analysis
   • DMonte Carlo simulation
   Reveal Solution Discussion Select an answer first
2. 22expert · medium

   A portfolio risk manager is monitoring a portfolio risk that has a response plan in place. The risk has not materialized, but the risk indicator has been fluctuating around the threshold. The response plan is costly to implement. What should the risk manager do?

   • AImplement the response plan immediately because the threshold has been reached.
   • BCancel the response plan because the risk has not materialized.
   • CWait until the risk materializes before implementing the response plan.
   • DReview the risk indicator trend and the cost-benefit of the response, and recommend a course of action to the steering committee.
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   How should risk responses be integrated into portfolio components?

   • ABy incorporating response actions into component plans and budgets
   • BBy documenting responses only in the risk register without further action
   • CBy waiting until the risk occurs before taking action
   • DBy keeping responses separate from component activities to avoid disruption
   Reveal Solution Discussion Select an answer first
5. 24application · medium

   A newly formed portfolio management office (PMO) is establishing its risk management practices. The portfolio includes projects from multiple business units with different risk tolerances. The PMO director wants to ensure consistent risk management across the portfolio. What should the PMO director do first?

   • AAsk each business unit to use its own risk management process and report results to the PMO.
   • BImmediately begin identifying risks by conducting interviews with project managers.
   • CDevelop a portfolio risk management plan that defines the risk management approach, roles, and reporting requirements.
   • DPurchase a risk management software tool and train all project managers on its use.
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   What is the primary purpose of a portfolio risk management plan?

   • ATo guarantee that all portfolio risks are eliminated before component selection
   • BTo document how risk management activities will be structured and performed for the portfolio
   • CTo provide a detailed schedule for all portfolio component activities
   • DTo list every risk that could affect the portfolio and assign an owner to each
   Reveal Solution Discussion Select an answer first