Portfolio Management Professional PfMP Exam Dumps

1. Assume you are the portfolio manager for your pork producing company, the market leader in your country. Over time, the industry has recovered from trichinosis as a risk. Your company has added new components to its portfolio, and many have been to demonstrate to the public that its products are safe. It implemented the Agriculture Department's and Food and Drug Administration's Hazard Analysis and Critical Control Point (HACCP) regulations and is enhancing its image as 'the other white meat'. However, now the entire industry is faced with a new epidemic known as porcine epidemic virus, which is affecting pigs in 22 different states, and profits have decreased significantly. New components now must be added to the portfolio.

This situation shows:

2. 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?

3. As part of the portfolio communication management, multiple documents are prepared in order to effectively manage communications.

The Stakeholder matrix is one of the prepared documents, what does it include?

4. In order to guide the work and correctly manage the portfolio, one of the major documents to be prepared is the Portfolio Management Plan acting as guideline for portfolio management .

What are the tools and techniques you could use while developing this plan?

5. Your company got recently acquired by another company and the strategic directions which your portfolio is based on have been changed .

Which document do you, as a portfolio manager, update to reflect the change to the timeline?

6. ecause your company's Portfolio Review Board consists of the Directors of its five business units and is chaired by the CEO, the meetings tend to be contentious as there is limited funding available to authorize all the proposed programs and projects. Dissension also is the norm if resources are reallocated from one business unit to another.

As a result, the CEO:

7. In your portfolio some of the programs and projects that are being pursued will realize benefits throughout the program and project's life cycle, while others will not realize the benefits until the program or project is closed or years later.

This means as the portfolio manager, you should:

8. You are the portfolio management for a big corporate with existence in 3 continents.

While planning the performance management and in particular the dashboards and reporting tools, which of the following options is the most important to account for the different geographical locations?

9. 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 risks is key to success, and you are coaching your team on the same. While planning for risk management, multiple investment choice tools are used as part of the quantitative and qualitative analyzes .

Which of the following tools determines the effects of portfolio velocity?

10. You are managing a portfolio in a functional organization and resources are shared between operations and projects. You are continuously performing capability and capacity analysis in order to optimize the portfolio .

Which of the following capability and capacity analysis is used to limit the number OR size of components the organization can execute?

11. A portfolio manager needs to continuously balance the need and requirements with the available resources to maintain a balanced portfolio and portfolio resources in order to optimize delivery, in addition to managing communication, risk, etc. For this you develop a robust Portfolio Management Plan .

Which of the below is not a part of this plan?

12. Over the years, your organization has grown significantly as it has entered new markets while maintaining its presence in its traditional product line of security systems. The company now has eight different business units rather than three, which was the case only two years ago, and it set up funding originally such that it was only allocated to one business unit and could not be transferred to others. At the recently held Portfolio Oversight Committee meeting, five business units did not add components, but some were completed. The other three added a number of programs and projects, which were authorized. Now funding for these new components is an issue.

This means:

13. As you are the portfolio manager for your state government agency, which is undergoing a series of budget cuts, you are focusing attention on managing risks to the portfolio as the budget is reduced. You realize in this process the time and budget for risk management also will be reduced; these data are in the:

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

15. Working as the portfolio manager for your business unit of a major aerospace organization means you have a variety of programs, projects, and operational activities under way.

You have set up a number of reports on the progress of the portfolio for your various stakeholders, but the best approach is to monitor the progress of the portfolio against:

16. A problem related to internal corruption has occurred in your company. The CEO has setup a new management team and had to do budget cuts until the situation is stabilized. Your portfolio is highly affected by this budget cut and you were obliged to cancel a few components .

What is your best course of action in this case?

17. As part of the Portfolio Communication, the Portfolio Manager analyzes the raw data assimilated from the portfolio process assets and from the stakeholder analysis. This analysis aims to isolate the data that hold value to the receiving audience .

Which tool can the portfolio manager use to help him in performing this analysis?

18. Assume your automotive company is new to formal portfolio management. It has had for years a strategic plan and tries to be first to market for new and improved features on its vehicles each model year. You were hired as the portfolio manager to provide a more disciplined approach for determining new products to pursue as well as existing ones that should be terminated. So far, you have set up an approach, established categories for the various components, and determined a method to rank and score new proposals for consideration. Now you are working to set up practices to follow to optimize the portfolio. In doing so, it is important to note that:

19. You are the portfolio manager in a large organization including a diversity of stakeholders.

From the start, you knew the importance of correctly managing the stakeholders requirements and concerns and you grouped them in order to

20. Establishing a portfolio management process starts with the development of the organizational portfolio management implementation plan .

Which of the following helps while developing this plan?

21. One of your component managers has submitted his resignation and left the company; a new program manager joins the portfolio replacing him .

Which document you use to inform the new program manager about his responsibilities in the portfolio?

22. You are managing a large portfolio and know that you will need to constantly show the progress and status of the portfolio in meeting. For this you have developed a robust roadmap using BI tools. The portfolio roadmap is used abundantly as an input to 7 processes.

When it comes to managing portfolio value, how is the portfolio roadmap used?

23. Assume before you prepared your portfolio management plan for your company that you did some benchmarking and learned that if you used elicitation techniques it was useful in the portfolio development stage and before there were significant scope changes because of strategy changes to the portfolio. You decided to involve the Portfolio Review Board members, other key stakeholders, and some subject matter experts in this process and then decided to poll input from the group as a majority vote.

This meant you were using:

24. While managing a program for the banking sector spanning multiple transformational areas. A new portfolio manager comes to you seeking advice on the usefulness of ROI.

You tell her that ROI is the best method to measure returns of

25. Assume you work for a technology company that is publically owned, and the value of its stock is tracked daily by the CFO and is reported to the portfolio manager. Quarterly meetings are held with stockholders as the company went public through an Initial public offering (IPO) last year.

These stockholders:

26. You have been assigned as the manager for a major transformation portfolio in your company. You have a new direction in sight and you need to work with the team to attain the end goal and achieve the expected strategy. You are currently in the middle of developing the strategic plan and require the following inputs

27. Your IT company has been successful as it is able to deliver projects on time without the need for rework and within the allocated budget. Your customers have been astonished with the results and are using your company for additional work, plus they have been recommending your company to others. Your company is experiencing tremendous growth and wants to ensure it can take on the new work with existing resources, both people and systems, or whether it will need to use outsourcing. Given its outstanding reputation, your executives wish to avoid the need to outsource. You have been asked to perform a capacity analysis.

A best practice is to:

28. While defining the portfolio, the portfolio manager uses a set of evaluation criteria in order to generate a list of portfolio components for optimization and balancing .

Which of the following is not an evaluation criteria?

29. You are in the process of planning the portfolio for a major client and wanted to put an extra effort on planning for managing the performance as the portfolio has a lot of technical aspects and correct performance management is key to success .

What tools and techniques can you use for this purpose?

30. Assume you are putting together for the Portfolio Review Board several options for

consideration of potential components and current components. You are using an approach with different probabilities to determine outcomes and EMV .

Which of the following would you recommend realizing Components A and B are new, while C and D are in progress:

31. As part of developing the Communication Management Plan, a portfolio manager executes the Communication Requirements Analysis, in addition to Stakeholders Analysis .

Which of the following options in your opinion is a result of the Communication Requirements Analysis?

32. Assume you are helping the Portfolio Review Board select and implement the portfolio with the best alignment to strategy as you work to create a list for to be considered for prioritization. One possible component on the surface does not seem to be one that is profitable, but you believe that over time changes will occur that will make it cost/beneficial to pursue.

This means you are using:

33. Assume you are co-owner of a small consulting firm. Previously, you worked as a managing partner in one of the larger consulting firms in your country that had a defined portfolio management process to determine key opportunities to pursue to focus not solely on proposal win ratio but to aggressively emphasize capture ratio.

Now in your new company in terms of portfolio management, the best practice to follow is to:

34. You are managing a big portfolio and have a lot of stakeholders, whether external or internal. You know that stakeholder engagement is crucial to the success of the portfolio and realize that in order to have proper stakeholders engagement you will need to

35. 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?

36. 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. For this, you are always on the lookout to optimize your portfolio .

What can you use to start this process?

37. Your company is currently on the verge of bankruptcy due to the lack of transparency within the organization; this alerted the CEO to take decisive actions and request that new reporting lines be established in order to be fully transparent. The new reporting lines triggered changes in roles & responsibilities for managing communication and communication policies & constraints.

Where are these changes reflected when it relates to your portfolio?

38. During a portfolio review meeting, the steering committee has decided on the inclusion of a new project to re-align the portfolio with its strategic objectives, what do you do before and after the meeting?

39. You are managing a portfolio for your company and are trying to balance the tasks that will be done internally based on the availability and the ones that will be outsourced. Managing supply and demand is a recurring activity in the portfolio life cycle and results in changes in resource utilization and resource efficiency .

Which of the below helps in optimizing the supply and demand?

40. You have been asked to be the manager for a governmental portfolio, and your starting point should be tendering a strategic plan to the board for validation and approval for continuation .

Which documents/artifacts do you have debuting the portfolio that you can use to develop the strategic plan?

41. In preparing your communications matrix, you identified five communication areas. One is portfolio governance decisions.

A communication vehicle for these decisions is:

42. Values assist in guiding actions, evaluations, and decisions. Assume your organization is considering entering into a consortium to produce a heliumcontrolled car. Once the helium is supplied, additional amounts will not be needed. The car is to be personally appealing with a focus on an inexpensive cost to increase marketability. The consortium will enable each firm to capitalize on the expertise of the other firms in it, but the customer will view it as a separate entity. If your organization enters into the consortium, it must justify the value to the portfolio of doing so.

In addition to ensure benefits are realized a focus is needed on:

43. 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. One of your team members came to you asking about the order of the steps used to perform risk management activities .

What should be your answer to him?

44. In managing strategic change, the portfolio manager performs stakeholder analysis in order to consider the changing requirements. One of the key stakeholders expressed concerns about the lack of recognition of the value contribution of his department. The portfolio manager is not convinced with the level of value contribution .

Which of the following is considered the best approach to take?

45. Obviously resources are more than people and include physical resources and those at the organizational level, such as the knowledge management system, helpful in portfolio management in terms of competitive intelligence. However, since most organizations operate with scarce resources, it is necessary to apply these scarce resources to support the highest ranked items in the portfolio and not to fund a proposed component unless resources are available to support it. Therefore, it is useful to determine at a collective level whether or not resources will create value greater than the cost of creating it.

A portfolio report can focus on:

46. As a result of optimization, one of the components was deemed necessary to be terminated. One of the executive managers found about this and called you telling you that you should leave this component as it is of interest to her and she wants to see it finalized and that she will make resources available to it if needed .

What should be your best course of action?

47. When you are a portfolio manager, you need to do and re-do multiple processes in order to maintain the portfolio alignment to the changing strategies .

Which of the following are considered outputs to the Develop Charter process?

48. The interest, influence, and communication needs of business operational stakeholders who are looking to ensure alignment between portfolio components, while minimizing negative impact and maximizing positive benefits of all portfolio-managed changes to their business operations, relate to which type of stakeholders?

49. As a portfolio manager you visit and re-do the Optimize Portfolio process continuously .

Which of the following, in your opinion, is the objective/purpose of the Optimize Portfolio Process?

50. The company's management is not happy with the bared risk for the expected Portfolio value return and has reached a subject matter expert to try to re-align the risk level with the management expectations. The expert stated that it is preferable to diversify the portfolio components in order to get more results. In that case, you

51. You have been managing multiple portfolios in your company for the past two decades and all deliveries were successful. A new portfolio manager is struggling and came to you for advice on the portfolio process groups. He knows that portfolio process groups are the base of portfolio management. While you explain to him about them, you told him that portfolio process groups are independent of

52. Organizations pass by a strategic planning cycle on regular basis in order to align existing strategies, remove strategies and add new ones.

When it comes to the implementation, which of the following options represents the activities through which the organizational strategies are implemented?

53. You have been recently assigned to manage a new portfolio that is supposed to shift the company from silo-based to a projectized one. You are in the process of initiating the portfolio. You are currently developing the strategic plan. Upon finishing it, you are expected to present

54. You have already created 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 now want to recommend portfolio scenario(s) and related components, based on prioritization analysis/criteria. You are doing this in order to

55. You are the manager for a governmental portfolio aiming to restructure the roads in your country. Having a tight schedule, a large number of stakeholders including the public, in addition to a strict budgeting framework, you know that you will be managing the communication closely and that the governance board and the stakeholders would want to check on the progress and performance frequently. For this you have developed a robust Communication management plan .

What is the result of developing this plan?

56. You are managing a large construction portfolio. Recently, and due to budget cuts, you have been having resources issues on multiple initiatives and has been struggling with maintaining a healthy resource allocations.

You are currently analyzing the capability and capacity for scarce machinery resources shared across three major programs in the portfolio .

What are you currently applying?

57. You are managing a portfolio linked to multiple business units and you set clear roles and responsibilities from the beginning to avoid delays and to enhance the decision making process. An unanticipated issue occurred last week, which relates to one of your team members missing to check the market fluctuating currency.

In which of the following documents should you look to know which member was responsible of this?

58. Following a major organizational restructuring, new portfolios are currently being initiated. You have been assigned the position of portfolio manager on one of the major portfolios and are currently in strategic management. You are currently performing cost-benefit analysis .

What is part of this analysis?

59. 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?

60. Stakeholders have complained to you that they are receiving redundant information and they prefer that you fix the issue promptly as it is time consuming for them .

What is your best course of action?

61. After the stakeholder analysis is complete, a best practice is to put stakeholders into a matrix to develop a communications management strategy. A simple but useful approach is to set it up to show:

62. You are managing a portfolio in a functional organization and resources are shared between operations and projects. You are continuously performing capability and capacity analysis in order to optimize the portfolio .

Which of the following capability and capacity analysis is used to just limit the number of components the organization can execute?

63. Your portfolio is on a tight deliverables and is considered the major portfolio in your company. Stakeholders are concerned about the purpose of defining a portfolio while already having an inventory of work and are worried that this will cause a lot of time to be wasted .

What is your advice to the stakeholders?

64. Risk is inherent in all activities and managing risk is critical to a successful portfolio. Risks perspectives differ within the organization between executive management, operations management, portfolio management and project/program management.

When it comes to Portfolio management, which of the following is a risk concern?

65. Your company's water treatment center serves three cities. Tests are conducted each day to see if the water is safe to drink. On Thursday, E coli were found in the water, but the water authority did not notify the citizens in the three cities. Instead, the citizens learned on Friday, the water was now safe to drink. The citizens are in an uproar, and your company is to blame. It is obvious one of the problems is the aging infrastructure and limited resources.

To best optimize the portfolio, your CEO asked you to:

66. You are managing a large portfolio and know that you will need to constantly show the progress and status of the portfolio in meeting. For this you have developed a robust roadmap using BI tools. The Portfolio Roadmap is an important document that is referenced throughout the portfolio life cycle .

Which of the following is correct regarding the Portfolio Roadmap purpose and focus?

67. You are the manager of a major portfolio with a critical strategic objective. You have just finalized the roadmap development and wanted to have a quick discussion on it with the team. One of your team members asks you your opinion on the relation between Portfolio roadmap and Strategic Objectives .

What would your answer be?

68. 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. You are currently using it in the development of your charter .

What is its purpose in this case?

69. 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. For this you maintain a risk register. The risk register is used throughout the portfolio life cycle in order to track and manage risks. It is continually updated throughout the portfolio life cycle. As a portfolio manager, you know that the risk register includes all of the following except

70. The audit department has found out that two of the departments have conflicting standards and have asked you to analyze and compare them in order to be able to take a decision which could impact the portfolio alignment .

Which analysis will you use to compare conflicting standards in different departments

71. 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?

72. 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:

73. Because of the ongoing and iterative nature of portfolio management, the processes in it are continually repeated as new components are added, and others are completed or terminated. Revisions are constant given complexity, risks, and the rate of change.

As you work to optimize the portfolio, it is helpful to:

74. 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. While planning for risk management, multiple investment choice tools are used as part of the quantitative and qualitative analyzes .

Which of the following tools determine the effect of changing the portfolio?

75. Having worked in portfolio management before, you are pleased you were selected to implement it and be the portfolio manager for your motorcycle company, well known throughout the world. As it is a new function, you worked with the Enterprise Program Management Office to ensure you had a complete inventory of the work in progress. Now as you prepared your various portfolio management artifacts, and have a Portfolio Review Board meeting upcoming in two weeks, sponsors will be proposing new components.

This means:

76. Assume you are the corporate portfolio manager for your global organization. There is one portfolio at the corporate level, but other portfolios supporting business units and core areas of the company. One of these portfolios involves manufacturing, and its number one program in terms of priorities is to implement an enterprise resource planning system. Since it is the number one ranked program in this portfolio, it is of interest at the corporate level, and you and your team provide reports on its progress monthly.

You can see that:

77. As a portfolio manager you need to continuously balance the need and requirements with the available resources to maintain a balanced portfolio and portfolio resources in order to optimize delivery. One of your key stakeholders came to you asking to skip the manage supply and demand process as you have already prioritized and allocated resources through the strategic management and the governance processes. As a portfolio manager you should

78. Assume you are the portfolio manager for a company that specializes in software, including portfolio management software. It has many components under way to enhance the

existing product line but also to move the company into Cloud computing. You regularly prepare reports on the portfolio status but lately have had a large number of stakeholders request ad hoc reports. You decided to survey your stakeholders to learn about their information needs. You next decided to hold some one-on-one interviews with several interested and influential stakeholders in terms of communications requirements.

From these interviews you are concerned that some stakeholder groups may be missing so you decided to:

79. 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. A major risk has recently occurred and the risk owner came to you asking advise on how to report it.

What would you advise her?

80. As the portfolio manager you have worked to consider the complexities involved of the interdependencies in your programs, projects, and ongoing work. As your portfolio process has been implemented for three years, a key challenge is that senior executives tend to change priorities often even though programs and projects are being implemented. Often these programs and projects are cross-functional, and the result is your process is not coordinated. You recognize there is a need to change, and you met with the Chair of the Portfolio Review Board and have her support for a transparent approach for portfolio standards and prioritization.

You should:

81. As you grow older, you gain more experience and things that once seemed hard to assimilate, can become very easy. One junior member of your portfolio management team is confused on the relationship between the Optimize, Authorize and Provide Oversight processes .

What could your advice to him be?

82. 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. Multiple risks have already been spotted in your portfolio and you are now identifying, assessing and developing risk response plans for them, in addition to monitoring and controlling them .

What are you looking for? You were finding this hard at first however you asked the help from a senior portfolio manager and he redirected you to use

83. Managing Strategic Change is an integral part of any portfolio in order to remain aligned with the strategic objectives. Your portfolio has undergone a major strategic change and you are currently determining the volume of work required to do in order to re-align the portfolio .

What are you currently using?

84. You are the CIO of a real estate investment trust (REIT) that invests in apartments and condominiums in more than 50% of the states in your country. Your organization has as its goal to respond to any concerns that arise within 24 hours; for example, you want to make sure Wi-Fi sites are operational if there are any power outages, and people have soft phone service available 24/7.

You are a member of the REIT's Portfolio Review Board, and as a member of the executive team in terms of portfolio risk management, you want to focus on:

85. Your company got recently acquired by another company and the strategic directions which your portfolio is based on have been changed .

Which document do you, as a portfolio manager, update to reflect how the new strategy will be implemented?

86. Your organization, given the economic downturn in your country, decided to reduce its staff by 90% and outsource all operational activities including those of program and project managers and their teams. It has, however, retained the portfolio manager, and it has a Portfolio Review Board comprised of senior executives that meets monthly. Since outsourcing is the norm and not the exception, the manager of Procurement and Contracting is a major stakeholder.

Her areas of interest are:

87. After a strategic change is managed and finalized, you as a portfolio manager, are expected to document changes to the portfolio components attributes .

Which of the following is the document in which you document these changes?

88. Many people in your country are no longer eating food from cans because of the risk of

botulism and eColi O1H747. Your low acid canned foods company is seeing its revenues decrease as a result, and it is updating its overall strategy for the company to diversify into other markets as well as to add an aggressive marketing campaign to ensure the public that its low acid canned foods are generally recognized as safe by the Food and Drug Administration.

This means in terms of portfolio management:

89. Assume you are managing the corporate portfolio for your company noted for many products primarily focused on farm equipment. Recently it has diversified into other markets especially with the economic downturn in the country. While many of the traditional products are in the portfolio as new features are added to enhance customer satisfaction, one of the new product lines is a high-profile program that is ranked number five in the corporate portfolio. As the portfolio manager, you know this program has several interdependencies with other projects and programs, and recently this high-ranked program has experienced difficulties as needed technology is not available externally, and internal staff lacks the needed competencies to develop it. Its termination will be discussed at Friday's Portfolio Board meeting.

You plan to discuss these interdependencies as part of your responsibilities in:

90. As a portfolio manager and in the aim of defining the preliminary list of components to be included in your portfolio, which will serve as a starting point for developing a portfolio. You start by identifying existing and potential portfolio components by reviewing documentation such as business plans/proposals in order to

91. When we talk about portfolios, programs and projects, it is inevitable to mention the business value which is the sum of tangible and intangible assets of an organization, also known as the net quantifiable benefit.

When it comes to business value, at which level of the organization is the pursuit of Business Value optimized?

92. 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?

93. As you focus on managing the value pf the portfolio, you find that portfolio variance/alert reports are helpful.

Assume you have been using a 'traffic light' format as it is easy to prepare, but an objective is to:

94. Your company has decided to invest in a revolutionary product that will make the delivery of online orders easier and will cut down the delivery time by no less than 35%.

While measuring the value of the new component with relation to the market, which of the following should be used?

95. One of the junior portfolio managers learned that she needs to use the roadmap as an input to the portfolio management plan development. She does not understand why, and she came to you for advice .

What is your advice to her?

96. One of your company's junior portfolio managers came to you for advice. He noticed while checking the roadmap that it does not include all the portfolio components .

What should be your advice to him?

97. Your organization, a leading restaurant focusing on pancakes, is seeking to expand its portfolio. It is interested in ensuring new components support: return on investment, customer satisfaction, reputation enhancement, and branding.

These four areas represent:

98. While Optimizing your portfolio, you need to present to the governance board how your components will be ranked and balanced in a quantifiable way .

How will you do this?

99. Your organization has a defined portfolio management process that it has followed for three years. As the portfolio manager, you keep your various plans up to date, and because of numerous regulatory changes involving the telecom industry, it is time to review and update the risk management plan. You have several key stakeholders working with you as you realize the importance of this plan in maintaining a competitive advantage.

One way you and your team are assessing the various risks that may impact the structure of the portfolio is to use:

100. 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?

101. Portfolio balancing can be done in several different dimensions based on organizational preferences. When your software development company, which is CMMI Level 5 certified, began to focus on portfolio management four years ago, you started with a simplified ranking approach and now moved into using an automated, sophisticated weighted scoring software tool throughout the organization.

In terms of portfolio balancing, it is appropriate to:

102. You have been assigned as a consultant to give your expertise on a failing portfolio which is critical to the success of your client's organization. You are now in the process of reviewing the portfolio management plan .

What do you expect to see as part of this plan?

103. CORRECT TEXT

Assume your consulting company tried portfolio management in the past, but it was not embraced. Instead, people received bonuses if they were able to acquire new work regardless if it fit the company's strategic plan. However, the company was sold, and the new executive team asked you to be the portfolio manager. You explained it did not work in the past, but the new team has pointed

104. You are working diligently to ensure people throughout the organization realize the importance of portfolio management. To do so, you are preparing a communications strategy.

When you distribute it, you will be able to show you can satisfy information requirements in order to:

105. In a portfolio, data is an abundant asset, and managing the information aiming for a better decision making is critical. Information is considered to be the link between the portfolio activities and entities. You are currently collecting, analyzing, storing, and delivering portfolio information to stakeholders in accordance with their requirements .

What can help you in doing this?

106. Assume you are the portfolio manager for a telecommunications company. Your company was about to launch a new and easy to use smart phone with more features than any existing phones on the market at a lower price. However, although the phone was due to market in five days, the Federal Communications Commission issued today a regulation that would make your new phone not available for use in airplanes. Thus additional work must be done, and your executives are wondering whether a new phone should be developed for this new feature. You are ensuring that if a new phone is developed, or if the almost completed product is not to be marketed, there is still alignment to the organization's strategy.

As you complete an analysis of alternatives, you also should ensure results of the analysis are reflected in the:

107. 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:

108. Assume as the portfolio manager you have conducted a stakeholder analysis, gap analysis, and a readiness analysis as your cereal company is now entering the ice cream market. A team was formed and located off site to determine whether this market was one in which your company could compete, and its recommendation to do so was accepted by the Portfolio Review Board.

Now you need to:

109. Assume you are the portfolio manager for a leading drug store in your country that offers numerous products. In the past four years, nearly every store has had to enlarge its pharmacy unit and hire additional staff members with the aging population. Observing this change, two years ago, stores set up clinics to provide customers with immediate care.

As you see the growth in the stores in the health arena, you are looking at trends and realize:

110. You are managing a large portfolio and are approaching to a major checkpoint. As a portfolio manager, you are now collecting information and reports from various components for aggregation and presentation .

What method/tool can you use to support you in this process?

111. A new regulatory mandate has been imposed by the government which highly affected your portfolio. Multiple regulatory components are requested to be added to the portfolio in order to comply with new governmental bank regulations.

Initiating these components requires permission from

112. Risks perspectives differ within the organization between executive management, operations management, portfolio management and project/program management .

Which of the following are common risk concerns across the organization?

113. Risk Management is integrated in all the other processes and process groups and is an integral recurrent activity throughout the portfolio life cycle .

Which of the following is considered the most effective method for analyzing the effect of risks on portfolio strategic objectives, and determining whether they have high or low effect?

114. Assume you are the portfolio manager for a legacy software company. For many years, your company was one of the top five leaders in software development, but as newer and more efficient software was invented, it began to lose market share. Your company then found its services were needed as legacy systems were converted, especially since Cloud computing now is so popular. But it has lost revenues increasingly over the years.

To gain market share and provide greater portfolio value, the executive team decided it should:

115. Since you work for a global aerospace and defense organization, it decided to pilot the implementation of portfolio management in its cargo aviation business unit. You were asked to lead this initiative and realized before you could proceed, you should find out information about all the existing projects, programs, and operational activities. This task took three months to complete, but with this list, you now can use it to set up categories for the work that is under way and to also define criteria to use to propose new components.

As a result you should:

116. Your CEO is keen to know the likelihood of the portfolio to realize the expected ROI. You are currently looking for a tool to calculate the probability to achieve portfolio objectives .

Which of the following will help you in doing that?

117. Assume your airline just merged with a competitor, making it the largest in the country. Your company has a defined portfolio management process in place, which is considered effective by your executives. The other airline uses a more informal approach. Executives from both airlines now have different philosophies concerning new work to be pursued to be the leading airline in the country.

In terms of the Authorize Portfolio process, this means:

118. After a recent Portfolio Review Board, the portfolio was optimized, and some components were added, while others were removed.

Various portfolio reports also require updates such as:

119. In a portfolio, data is an abundant asset, and managing the information aiming for a a better decision making is critical. For this you use a variety of Quantitative and Qualitative analysis methods. These methods are performed in 4 of the portfolio management processes and serve a slightly different purpose in each and every one of them. Considering that you are currently working to ensure resource capacity is optimally allocated against resource requirements or demand based on known organizational priorities and potential value, how can you make use of the quantitative and qualitative analysis?

120. Stakeholders in your company are skeptical of the changes that will occur as portfolio management is being implemented. While some are supportive, most are not as they believe their work may be terminated. As the portfolio manager, you prepared a list of stakeholders, which is included in the:

121. Assuming a portfolio manager position means one has more stakeholders than in program, project, or operational roles.

The goal is to identify all interested stakeholders but often overlooked are:

122. Along the course of the portfolio, you will be recommending the initiation, termination and update of components. The governance bodies will be approving or rejecting your recommendations as part of their role in the authorization of the portfolio.

As a portfolio manager, which of the following, in your opinion, is the objective/purpose of the Authorize Portfolio Process?

123. Capability and capacity analysis are useful tools in portfolio performance management. In using this type of analysis a best practice is to:

124. Assume you are a functional manager in your medical device company in research and development. Your scientists have determined a new product that will be a breakthrough for the company, and you want to serve as the sponsor for this component and present it to your Portfolio Review Board. You will need resources from other parts of the company to commercialize it.

As you prepare your proposal you are following the key descriptors set up by the portfolio staff and will include:

125. Your organization conducted an OPM3 assessment focusing on its best practices in portfolio management and also on those that were needed. The OPM3 Certified Professional felt greater attention was needed managing strategic change.

This means:

126. The portfolio manager defines the portfolio based on a listing of already existing work in the organization and selects the right components in order to be able to prioritize them .

What do you use for defining the portfolio based on the listing of work?

127. Risks are very important to manage in portfolio management and organizations can choose to embrace risks with the potential of high rewards. As a portfolio manager, planning and managing risks is important. Risks are categorized in order to ease the process .

Which of the following are considered as risk categories that a portfolio manager can use?

128. The Portfolio Charter is an important document that is referenced throughout the portfolio life cycle .

Which of the following is correct regarding the Portfolio Charter purpose and focus?

129. Stakeholders are concerned about the purpose of optimizing a portfolio while already having defined the portfolio with its related components, and are worried that this will cause a lot of time to be wasted .

What is your advice to the stakeholders?

130. In a portfolio, data is an abundant asset, and managing the information aiming for a a better decision making is critical. For this you use a variety of Quantitative and Qualitative analysis methods. These methods are performed in 4 of the portfolio management processes and serve a slightly different purpose in each and every one of them.

Considering that you are currently performing risk assessment and handling risk responses, how can you make use of the quantitative and qualitative analysis?

131. Assume you are the portfolio manager for the Federal Railroad Administration. Funding is provided annually according to the Government's budget process. Any monies that are not spent at the end of a fiscal year are lost, and there are some restrictions in place concerning whether funds can be transferred to different programs, projects, or operations work in the agency.

Therefore, to maximize the use of funding you require:

132. A new portfolio is initiated with you as the portfolio manager, you started by developing the portfolio strategic plan and are currently reviewing the Organizational Process Assets; which of the options can be a part of this input?

133. One of your component managers came to you to tell you about a risk affecting his component that will badly impact the component and might affect the portfolio. After

assessment, the risk turned out to be of low probability with high impact .

What do you do as a portfolio manager?

134. Your executive management has been recently undergoing a change from a functional organization to a projectized one and is currently assessing the volume of work that the organization can execute .

Which of the following tools and techniques will decide the volume of work and components that the organization can execute?

135. Your company changed its executives due to the lack of benefits realization and previous corruption issues. The new management has informed you that as of now, this will not change any process in the portfolio and everything will remain the same. However, only the risk tolerance for the organization will be impacted, what will you do as a portfolio manager?

136. You have just finished the development of the Portfolio Communication Management Plan. The portfolio team is looking for portfolio value assessment, status reports, and portfolio forecast with variance to plan.

Where should they find this information?

137. Developing the Portfolio Management Plan is a major step in a Portfolio and for a Portfolio Manager. You are currently developing this plan and having focus groups and brainstorming activities during which you are using mind-maps diagrams to organize the idea into logical groupings .

Which of the below are you using?

138. Along your portfolio lifecycle, you have been conducting multiple review meetings to ensure continuation from one phase to another and to ensure the alignment and value delivery, in addition to communicating decisions and valuable information to the related stakeholders.

When it comes to decisions and actions taken by the governance board as a result of these meetings, they are communicated through

139. As a portfolio manager, you realize the importance of communication for the success of a portfolio. You are now developing the portfolio management plan and are looking for the portfolio current risks status including high risks .

Which of the following contains what you are looking for?

140. As part of the strategic alignment, you Rank strategic priorities working with key stakeholders and using qualitative and quantitative analyses in order to

141. Assume your pork producing company finds that there is an over-abundance of pork products and competitors in the marketplace even though it has had to implement Hazard Analysis and Critical Control Point (HACCP) processes that are a regulatory requirement. Profits are lower than ever before in the history of the company. Management is changing the company's strategy to also focus on seafood products.

You have been asked to complete a gap analysis to:

142. Each time the Portfolio Governance Group meets the goal is to review the existing components and any that are proposed to ensure the portfolio has the best mix to attain strategic objectives. As the portfolio manager, you find these meetings, if facilitated accordingly, are effective decision-making sessions. However, you tend to have open issues after every meeting.

These open issues:

143. In a portfolio you have a continuous interaction between the portfolio and its components. The approach is top down when it comes to offering guidelines and approaches and becomes bottom up when the components report status and progress to the portfolio .

What is the relation between the portfolio and portfolio components when it comes to defining the performance measures and targets (metrics)?

144. A key role for portfolio management is to balance the use of resources following the need against the existing skill-set. One of the component managers told you that an important SME on his program is traveling and there is no replacement for her. This will cause a major delay in the program .

What is your first step as a portfolio manager?

145. You are in the toughest phase of the portfolio life cycle due to the governmental issues in your country. Yesterday night, one of the key team members quit and left the country. You have included this in the portfolio risk register while planning the portfolio because you knew that this could happen and that this key resource has family in Canada and can leave if the situation gets bad. Following this, you activated the response plan, which is to initiate a new component that will cater for reaching the deliverable in another way. However, an immediate approval is needed for initiation of this component or the end-of-month major deliverable will be delayed.

To whom you should present the proposal for urgent approval?

146. When managed correctly, the balanced scorecards can change the way an organization does business. Balanced scorecards keep focus on results.

As a portfolio manager, you know that the purpose of using the balanced scorecards is

147. Assume you are managing a high visibility project in your company that once it is completed will transform it into new markets and be the leader in the soft phone field. You are keeping the project a secret from external stakeholders, and you and your team have signed Non-disclosure agreements (NDAs). However, the executives and those on the Portfolio Review Board want status information on this project every two weeks.

You provide it:

148. The existing portfolio manager was replaced by a new portfolio manager and the analysis has shown that the distance between the pessimistic and best case scenario of the new portfolio manager is larger than the old one, which kind of manager is the new one?

149. You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. The Portfolio Process Assets are important and referenced throughout the portfolio life cycle .

Which of the following is correct regarding the Portfolio Process Assets purpose and focus?