Task 7 PFMP Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   What is the role of governance in maintaining strategic alignment?

   • ATo manage the day-to-day activities of projects
   • BTo approve all project budgets
   • CTo provide oversight and decision-making processes that keep the portfolio aligned with strategy
   • DTo replace the need for strategic planning
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A government agency is developing its annual portfolio. The strategic plan includes improving digital services for citizens, reducing processing times, and increasing transparency. The agency's IT department has proposed several projects, including a new online portal, a data analytics platform, and a legacy system modernization. The agency's budget office has also proposed a project to upgrade office furniture. How should the portfolio manager integrate the strategic plan with the portfolio?

   • AInclude all proposed projects in the portfolio to ensure all departments feel heard.
   • BSelect only the projects that directly support the strategic objectives, and exclude the office furniture project.
   • CPrioritize the office furniture project because it is low-cost and can be completed quickly.
   • DAsk the budget office to justify the office furniture project in terms of strategic alignment.
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   A portfolio manager at a bank is mapping portfolio components to strategic objectives. The strategic objectives are: (1) increase digital adoption, (2) improve risk management, and (3) reduce operational costs. The portfolio includes the following components: a mobile banking app upgrade, a new fraud detection system, a branch network optimization project, and a customer data platform implementation. Which component should be mapped to the objective of improving risk management?

   • AMobile banking app upgrade
   • BNew fraud detection system
   • CCustomer data platform implementation
   • DBranch network optimization
   Reveal Solution Discussion Select an answer first
5. 19application · medium

   A healthcare organization's portfolio includes a mix of projects and programs. The strategic objectives are to improve patient outcomes, reduce operational costs, and expand telemedicine services. The portfolio manager is reviewing the portfolio performance dashboard. Which set of metrics would best indicate the portfolio's alignment with the strategy?

   • ANumber of projects completed and total spend against plan
   • BPatient satisfaction scores, cost per patient visit, and number of telemedicine consultations
   • CEmployee engagement scores and internal process efficiency ratings
   • DPercentage of projects on schedule and within budget
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A large retail chain has a portfolio that includes a project to implement a new point-of-sale system, a program to revamp the supply chain, and a project to launch a customer loyalty program. The organization's strategy is to enhance customer experience and improve operational efficiency. The governance board is reviewing the portfolio and notices that the loyalty program project is consuming a disproportionate amount of resources and is behind schedule. The board is considering whether to continue, modify, or terminate the project. What should the governance board do to maintain strategic alignment?

   • AContinue the project as planned and review it again at the next quarterly meeting.
   • BRequest a detailed assessment of the loyalty program's alignment with strategic objectives, its performance, and the impact of continuing, modifying, or terminating it.
   • CTerminate the loyalty program project immediately to free up resources for other components.
   • DApprove additional funding for the loyalty program to ensure its completion, as it is strategically important.
   Reveal Solution Discussion Select an answer first