Which characteristic is most important for portfolio risk communication to be effective?

Technical detail and complexity

A portfolio manager is reviewing a portfolio-level risk: a key supplier of a critical component for multiple projects may go out of business. The portfolio has a tight budget and limited time to act. The strategic objective is to maintain delivery of the portfolio's products. Which risk response strategy should the portfolio manager select?

Avoid the risk by canceling all projects that depend on this supplier.

Mitigate by identifying and qualifying a backup supplier now, even if it requires a small investment.

Accept the risk and document it, since the supplier has not yet failed.

Transfer the risk by purchasing business interruption insurance for the portfolio.

What type of information should be included in risk response documentation?

The personal opinions of the portfolio manager

Only the risks that were successfully mitigated

The names of stakeholders who were not involved

The decisions made, actions taken, and outcomes achieved

A portfolio risk response has been in place for a year. The risk level has dropped below the portfolio's threshold, but the response is costly. What should the portfolio manager do?

Keep the response unchanged because it has been effective.

Immediately retire the response to save costs.

Evaluate whether the response can be scaled down or retired while keeping the risk below the threshold.

Increase the response's budget to further reduce the risk.

A portfolio risk response has been implemented, and the risk level is now below the threshold. However, the response has introduced a new risk that was not anticipated. What should the portfolio manager do?

Immediately stop the response to eliminate the new risk.

Ignore the new risk because the original risk is below the threshold.

Analyze the new risk, determine if it requires a response, and update the risk documentation.

Communicate the new risk to stakeholders but take no action.

PMIPortfolio Management Professional (PfMP)

Domain 4Objective 6

Task 6 PFMP Practice Questions (Page 4)

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 28 practice questions to prepare you well beyond it. (estimate)

28questions here

6free pages

5concepts

15%of the exam

Questions 16–20

16foundation · easy
Which characteristic is most important for portfolio risk communication to be effective?
Select an answer first
17application · medium
A portfolio manager is reviewing a portfolio-level risk: a key supplier of a critical component for multiple projects may go out of business. The portfolio has a tight budget and limited time to act. The strategic objective is to maintain delivery of the portfolio's products. Which risk response strategy should the portfolio manager select?
Select an answer first
18foundation · easy
What type of information should be included in risk response documentation?
Select an answer first
19application · medium
A portfolio risk response has been in place for a year. The risk level has dropped below the portfolio's threshold, but the response is costly. What should the portfolio manager do?
Select an answer first
20expert · hard
A portfolio risk response has been implemented, and the risk level is now below the threshold. However, the response has introduced a new risk that was not anticipated. What should the portfolio manager do?
Select an answer first

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