PMI PMI Certifications PFMP Questions & Answers

• Question 51:

  As soon as you complete the portfolio risk management plan, and you have been working on it now with a team, you realize you need to update some organizational process assets such as:

  A. Risk checklists

  B. Risk register

  C. Lessons learned

  D. Risk interview guide

  Correct Answer: A

• Question 52:

  You are the portfolio manager for your military-vehicle service firm, which has been in existence for 20 years. You have a number of components under way, and others in the pipeline. One component involves a new gas detection system, which uses new technology. It has interfaces with two other existing components plus one in development. Recently, a simulator, used by three components, had to be shut down completely as it was leaking nitrogen and could lead to asphyxiation. You reported it immediately to the Hazardous Materials and Pipeline Safety Administration. This is an example of a:

  A. Execution risk

  B. Structural risk

  C. Critical incident

  D. Known unknown

  Correct Answer: A

• Question 53:

  In your opinion as a portfolio manager, which of the following is considered one of the portfolio's concerns?

  A. Determining how to balance components given the organization's capacities and capabilities

  B. Maximizing financial value of the portfolio

  C. All of the options

  D. Tailoring the fit of the portfolio to the organizational strategy and objectives

  Correct Answer: C

• Question 54:

  As you work to determine which of four possible components to optimize the portfolio, assume you are using the internal rate of return as the key crite rion to make your recommendation. Only one new component can be added based on financial constraints. Each of the four potential components has benefits that support the strategic plan. Based on the following data, you recommend:

  

  A. Project A

  B. Program A

  C. Program B

  D. Project B

  Correct Answer: C

• Question 55:

  You are currently creating portfolio scenarios (what-if analysis) by reviewing components against prioritization criteria and using analysis techniques (e.g., options analysis, risk analysis, SWOT analysis, financial analysis). You are doing this in order to

  A. Understand the strategic priorities

  B. Create a basis for decision making

  C. Evaluate and select viable options

  D. Provide a guiding framework to operationalize the organizational strategic goals and objectives

  Correct Answer: C

• Question 56:

  You have set a meeting with your portfolio team members as an answer to the identification and update of the organization near-term budget and plans. One of your team members asked you of the goal of what is being done. Your answer to him should be

  A. All of the options

  B. Authorizing the portfolio

  C. Initiating the portfolio

  D. Developing specific portfolio assets

  Correct Answer: D

• Question 57:

  Based on the data in the following table, your organization should pursue which component:

  

  A. Component 5

  B. Component 3

  C. Component 2

  D. Component 1

  Correct Answer: C

• Question 58:

  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. The Portfolio Risk Management Plan is an important document that is referenced throughout the portfolio life cycle. Which of the following is correct regarding its purpose and focus?

  A. Updates standard criteria to allow the portfolio team to assess the risks that are identified

  B. Identifies recipients for information associated with the portfolio management process

  C. Shows how the portfolio component progress and resource-related issues and risks are integrated with the resource management activities

  D. Articulates the options, preferences, and factors that will be considered in a specific portfolio

  Correct Answer: A

• Question 59:

  You are currently in the process of allocating resources to develop component proposals, authorizing components to expend resources and to communicate portfolio decisions. What do you expect as outputs of this process?

  A. Portfolio Updates, Portfolio Management Plan updates, Portfolio Reports, Organizational Process Assets update

  B. Portfolio Updates, Portfolio Management Plan updates, Portfolio Reports, Organizational Process Assets update, Portfolio Process Assets update

  C. Portfolio Updates, Portfolio Management Plan updates, Portfolio Reports, Portfolio Process Assets update

  D. Portfolio Updates, Portfolio Strategic Plan updates, Portfolio Reports, Organizational Process Assets update, Portfolio Process Assets update

  Correct Answer: C

• Question 60:

  One of the ten underlying principles of portfolio management involves a strategic focus. Assume you are going to have a short meeting with your CEO tomorrow, and you want to succinctly describe it. You will tell the CEO it is important since it:

  A. Emphasizes the need for portfolio management to attain strategic objectives

  B. Provides a clear basis for decision making

  C. Includes processes and change initiatives to accomplish organizational strategies

  D. Balances conflicting demands

  Correct Answer: C