PFMP Online Practice Questions and Answers

In identifying risks to then manage and control, as the portfolio manager you are consulting organizational process assets such as:

A. Commercial data bases

B. Lessons learned

C. Knowledge bases

D. Values

Chartering a portfolio is a major step in getting the needed authorizations to execute the portfolio. Your are currently developing the charter and considering the following inputs

A. Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets

B. Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets, Portfolio

C. Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets, Portfolio Management Plan

D. Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets, Portfolio Roadmap

When it comes to managing the portfolio value, one of the junior portfolio managers came to you asking about the relation between cost-benefit analysis and the efficient frontier analysis. What should your answer to her be?

A. The Efficient frontier analysis is used while performing the Cost-benefit analysis in order to get the confidence factor in the estimates

B. Efficient frontiers are not static, and organizations should monitor cost-benefit ratios on a continual basis

C. Efficient frontier tracks the realized value against planned costs; thus is another way of cost-benefit analysis

D. Cost-Benefit analysis are not static, and organizations should monitor the efficient frontier ratios on a continual basis

Assume after the acquisition of the natural gas transmission company by your company, a natural gas distribution company, was approved by the various regulatory agencies. You now are overseeing more components with this acquisition as the portfolio manager. While you had each of the components in your company set up in various categories, this approach had not been followed by the transmission company. You explained to its portfolio manager and staff such an approach enables:

A. Common criteria for portfolio optimization

B. A similar approach to track contribution to strategic goals

C. A way to set up a common set of decision filters

D. An alignment with the prioritization model

Risks perspectives differ within the organization between executive management, operations management, portfolio management and project/program management. When it comes to Operations management, which of the following is a risk concern?

A. Issues with Product development

B. Time to market

C. Reporting and data accuracy

D. Time, cost and scope commitments

only, which has diversified its product line significantly in the last two years to keep up with its leading competitor located in a different state. Your executive management team learned the other cereal company had implemented portfolio management from a contractor and believes it is essential since the economy is struggling, and resources are constrained. Your first step has been to identify the existing operational work, projects, and programs as well as to learn about proposed components of the portfolio. This list:

A. Was easy to obtain as you used what was available from the Enterprise Program Management Office

B. Is part of the portfolio strategic plan

C. Was gathered through interviews with people from each business unit

D. Was prepared through questionnaires and the use of cross-functional focus groups

Management practices are leveraged by organizational resources and as a portfolio manager, you realize

that the correct management of supply and demand with relation to organizational resources is crucial to

the success of a portfolio.

Which of the following is not an organizational resource?

A. Program and project managers

B. None of the options

C. Funds

D. Assets

Managing risk is key to the success of any initiative. Risk is considered to be inherent in any activity we do in project management and at any level. Risk is part of project, program and portfolio management and has a different exposure in each and every one. Which of the following highlights this difference?

A. Project and Programs risks are combined in order to develop the portfolio risk register as an aggregation of both

B. Risks at project and programs level can be eliminated, but not at portfolio level

C. Portfolio risks are inter-components risks, while program and project risks are not

D. Project and Program risks are risks within the boundaries of the project or program, while portfolio risks can span the organizational level

Updates to schedules i.e. resource, funding, benefits, are results of Developing the Portfolio Performance Management Plan process. Where should these updates be recorded?

A. Portfolio Management Plan updates

B. Enterprise Environmental Factors Update

C. Portfolio Process Assets updates D. Portfolio update

One of your team members came to you asking about the risk "Watch List"; he heard this term in a meeting on risk analysis and did not know what it meant. What will your advice to your team member be?

A. Watch Lists include the risks with low probability and low impact that do not require further analysis

B. Watch Lists include the risks with low probability and high impact that needs to be watched closely

C. Watch Lists include the risks with high probability and low impact that needs to be watched closely

D. Watch Lists include the risks with high probability and high impact that needs to be watched closely