Which factor is most important when communicating risk information to stakeholders?

Providing all details to every stakeholder

Using technical jargon to demonstrate expertise

Communicating only positive risks

Tailoring the message to the audience's needs

Which activity is part of monitoring and controlling portfolio risks?

Developing the risk management plan

Reviewing risk response effectiveness

A portfolio risk manager has been monitoring a key risk indicator (KRI) that has been trending upward for the past two months. The risk is now approaching the threshold that triggers a predefined response. What should the risk manager do?

Escalate the trend to the steering committee and recommend activating the contingency plan.

Conduct a new risk identification workshop to find the cause of the trend.

Update the risk register to reflect the new probability and impact, but take no further action.

Wait until the threshold is crossed before taking any action.

A portfolio risk manager has analyzed two risks. Risk A has a 20% probability and a $5 million impact. Risk B has a 50% probability and a $1 million impact. The portfolio has a limited budget for risk responses. Which risk should be prioritized for a response?

Risk B, because it has a higher probability.

Both risks equally, because they have the same expected value.

Risk A, because its expected value is higher.

Risk A, because it has a higher impact.

PMIPortfolio Management Professional (PfMP)

Domain 4Objective 5

Task 5 PFMP Practice Questions (Page 6)

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 26–30

26foundation · easy
Which factor is most important when communicating risk information to stakeholders?
Select an answer first
27foundation · easy
Which technique is commonly used to identify portfolio-level risks?
Select an answer first
28foundation · easy
Which activity is part of monitoring and controlling portfolio risks?
Select an answer first
29application · medium
A portfolio risk manager has been monitoring a key risk indicator (KRI) that has been trending upward for the past two months. The risk is now approaching the threshold that triggers a predefined response. What should the risk manager do?
Select an answer first
30expert · medium
A portfolio risk manager has analyzed two risks. Risk A has a 20% probability and a $5 million impact. Risk B has a 50% probability and a $1 million impact. The portfolio has a limited budget for risk responses. Which risk should be prioritized for a response?
Select an answer first

Finished these 5 questions?

Review the revealed explanations, or continue through the curriculum.

Next 5 questions →Back to PFMP

Free Basic Practice is a study aid with revealable answers — not a scored exam. Examers.io is independent and not affiliated with or endorsed by PMI. “PFMP” is a trademark of its owner, used for identification only.