Portfolio managers tend to use the efficient frontier analysis as a modeling approach that gives decision makers the analytical tool to optimize portfolios given resource constraints such as risk. Consider that your company is risk-averse, on which side of the efficient frontier curve should the undertaken portfolios lie?
A. Below the curve
B. Along the lower bounds of the curve
C. Above the curve
D. Along the upper bounds of the curve
A number of components proposals are on the table as a result of the strategic planning cycle. While defining the portfolio, you wanted to make a preliminary screening of the proposed components in order to filter them based on the acceptance criteria. Which of the following techniques you use?
A. Weighted ranking and scoring
B. Categorization technique
C. Portfolio Component Inventory
D. Prioritization
A portfolio manager needs to continuously balance the need and requirements with the available resources and needs to maintain a balanced portfolio and portfolio resources in order to optimize delivery. Capability and Capacity analysis is performed in 4 of the portfolio management processes and it serves a slightly different purpose in each and every one of them. When it relates to developing the performance management plan, what is the purpose of using this analysis?
A. Performed to understand the human, financial, and asset capacity and capability of the organization in order to select, fund, and execute portfolio components
B. To study the capability of resources, match them against the portfolio's objectives and goals, and translate the capability into what capacity is possible to meet the portfolio demands
C. To understand how much work is able to be performed based on the resources available (capacity), as well as the ability of the organization to source and execute the selected portfolio
D. It enables the organization to achieve maximum portfolio benefits given current resource constraints
You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to success and you are coaching your team on the same. You are currently in the process of identifying and analyzing risk, in addition to developing risk responses and monitoring and controlling risk. Which documents can help you achieve this?
A. Portfolio Management Plan, Organizational Process Assets, Portfolio Reports, Enterprise Environmental Factors
B. Portfolio Management Plan, Organizational Process Assets, Portfolio Process Assets, Portfolio
C. Portfolio Management Plan, Organizational Process Assets, Portfolio Process Assets, Enterprise Environmental Factors, Portfolio, Portfolio Reports
D. Portfolio Management Plan, Portfolio, Portfolio Reports, Enterprise Environmental Factors
You have been recently assigned to a critical portfolio in your company and wanted to start right away and decided to begin with aligning the strategic management of the portfolio to the organizational strategy and objectives. For this you will use
A. Prioritization Analysis, Interdependency Analysis, Cost-Benefit Analysis
B. Strategic Alignment Analysis, Prioritization Analysis, Portfolio Component Inventory
C. Scenario Analysis, Capability and Capacity Analysis
D. Gap Analysis, Readiness Assessment, Stakeholder Analysis
By setting up portfolio categories and using a pair-wise comparison approach to rank components, as the portfolio manager, you feel that you are finally setting up and getting people to follow standard portfolio practices. Since portfolio management still is relatively new, progress is under way. As some components are added, and others are not continued, you are making sure if a component is terminated that it does not have dependencies with others in the portfolio. You need to then:
A. Revise the ranking model
B. Inform all stakeholders
C. Update the roadmap
D. Upgrade to a more detailed scoring model that includes dependencies with components
You are the manager of a major portfolio with a variety of stakeholders and stakeholder groups. you know that managing communication is key to success and you stress on maintaining a high communication level. As part of the portfolio communication management, multiple documents are prepared in order to effectively manage communications. The Communication matrix is one of the prepared documents, what does it include?
A. Stakeholders roles, interests, expectations and groups
B. Stakeholders quadrants showing the level of interest and influence
C. Representation of all of the communication for the portfolio and their frequency over a period of time
D. Intended recipients, communication vehicles, frequency and communication areas
As a portfolio manager, you have been reporting the progress, status and performance regularly and you have been doing a good job so far. Reports are the primary documents to communicate portfolio status and be able to balance the mix of portfolio components to best align with objectives. When it comes to optimizing a portfolio, how can risk reports be used?
A. To be able to analyze occurred risks and cancel any component who has an increased risk
B. To be able to define the organization risk tolerance and update the Strategic Plan accordingly
C. To know about major risks and occurred issues in relation with the portfolio components
D. To assess achieved value and the confidence level in it
You have a portfolio component that is using earned value analysis. It is at the 15% point of completion, and it is evident that it cannot be completed as planned. Adding resources will not solve the problem, and at the last Portfolio Review Board meeting, the Board members decided to terminate this component based on its various risks. They then decided the resources allocated to this component could be transferred to other portfolio components enhancing their early completion and avoiding risks from competitors. As the portfolio manager, you:
A. Worked with the component managers to ease the transition
B. Documented these decisions in portfolio reports
C. Set up both quantitative and qualitative metrics to determine the usefulness of adding resources to the other components
D. Met with the affected component managers and their teams to explain these changes
A portfolio manager on one of the major sub-portfolios in your portfolio has tendered his resignation and gave you a 2 months notice. This unexpected change will require you to take immediate action with the governance board. Which of the following processes will be handling this situation?
A. Manage Portfolio Risk
B. Provide Portfolio Oversight
C. Manage strategic change
D. Manage Supply and Demand
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