PfMP Practice Exam 2 — 20 Questions

Question 1

A Portfolio Manager identifies a high-impact risk that correlates across multiple programs. How should this be managed?

Accepted Answer

Manage the risk as a portfolio-level risk with a unified response strategy.. Correlated risks must be managed at the portfolio level to avoid redundant or conflicting responses.

Answer

Delegate the risk to the strongest program manager.

Answer

Ignore the risk until it becomes an issue for one of the programs.

Answer

Tell each program manager to manage the risk independently.

Question 2

What should you do if you realize that your stakeholder analysis is outdated?

Accepted Answer

Re-evaluate the stakeholders and update the register and engagement plan accordingly.. Stakeholder dynamics change throughout the portfolio lifecycle, requiring continuous monitoring and updates.

Answer

Ask the board to conduct the re-analysis for you.

Answer

Assume the initial analysis is still good enough.

Answer

Wait until the next annual review to update it.

Question 3

During component authorization, a project manager provides a cost-benefit analysis. What does the portfolio manager evaluate against?

Accepted Answer

The Portfolio Strategic Plan and prioritized portfolio objectives.. The portfolio manager evaluates the component against the Portfolio Strategic Plan to ensure it contributes to the intended portfolio value.

Answer

The total budget of the entire organization.

Answer

The personal preferences of the executive committee members.

Answer

The project team's past performance records.

Question 4

What is the role of the Portfolio Governance Committee in the portfolio roadmap?

Accepted Answer

To authorize and approve the high-level roadmap.. The Governance Committee approves the roadmap to ensure it aligns with the overall strategic direction of the portfolio.

Answer

To execute the individual tasks on the roadmap.

Answer

To create the detailed project schedules.

Answer

To perform the daily data entry for the roadmap.

Question 5

A portfolio manager identifies that the governance framework is too restrictive, causing project delays. What should the manager do?

Accepted Answer

Propose a review of the governance plan to the Governance Committee to simplify processes.. The manager should review the governance plan and propose changes to the Governance Committee to balance control and agility.

Answer

Bypass the governance steps to speed up delivery.

Answer

Add more staff to the governance committee to speed up decisions.

Answer

Accept the delays as part of the price of governance.

Question 6

Two components are competing for the same limited resource. What governance tool should the portfolio manager use to resolve this?

Accepted Answer

Evaluate both against the Portfolio Strategic Plan and apply prioritization criteria.. The portfolio manager uses the prioritization criteria established in the governance framework to allocate resources to the most strategic components.

Answer

Flip a coin to be fair.

Answer

Give the resource to the project with the longest timeline.

Answer

Ask the resource manager to decide.

Question 7

A project within the portfolio is found to be non-compliant with the organizational data privacy policy. What governance action is required?

Accepted Answer

Suspend the project, assess the risk, and enforce remediation before re-authorizing.. Governance must enforce compliance. The project must be halted until it achieves compliance or is re-planned.

Answer

Ignore the non-compliance as the project is near completion.

Answer

Issue a formal warning to the project team.

Answer

Report the project team to the HR department.

Question 8

Which THREE types of information should be included in a portfolio audit report?

Accepted Answer

Identification of non-compliance with the governance plan.. The audit report should summarize findings, highlight compliance gaps, and suggest improvements.

Answer

The complete internal chat history of the team.

Answer

The personal opinions of the auditor about the staff.

Question 9

Which THREE triggers would necessitate an immediate review of the portfolio roadmap?

Accepted Answer

A major change in available budget or key resources.. Significant changes in external conditions, strategy, or internal resource capacity require a roadmap adjustment.

Answer

A project manager taking a one-day vacation.

Answer

The lunch menu in the cafeteria changing.

Question 10

Which TWO groups are essential participants in the Portfolio Governance Committee?

Accepted Answer

Senior executives and business leaders.. The committee needs both strategic vision and operational reality to make effective decisions.

Answer

The office cleaning staff.

Answer

The entire company's sales force.

Answer

The local newspaper reporter.

Question 11

A project is performing well but the portfolio environment has shifted, making the project's output irrelevant. What is the portfolio manager's next step?

Accepted Answer

Recommend termination of the component.. The portfolio manager must ensure components remain relevant to the current strategic goals, even if they are performing well technically.

Answer

Re-classify the project as a 'support activity'.

Answer

Ask the steering committee to change the portfolio strategy.

Answer

Continue the project to avoid wasting past investments.

Question 12

Which TWO of the following are key inputs for the 'Portfolio Monitoring' process?

Accepted Answer

Portfolio performance data.. Performance data and the original plan are needed to identify variances.

Answer

Local weather reports.

Answer

Individual team member weekly timesheets.

Answer

Personal email of the CEO.

Question 13

Which TWO of the following are steps in the portfolio risk management process?

Accepted Answer

Risk monitoring.. Identification and monitoring are foundational steps in the risk management process.

Answer

Project team hiring.

Answer

Office cleaning.

Answer

Annual holiday planning.

Question 14

A Portfolio Manager identifies a high-level risk where the cumulative budget of active projects exceeds the total portfolio funding ceiling. Which action best aligns with Portfolio Risk Management best practices?

Accepted Answer

Re-evaluate the portfolio risk response plan to include a portfolio-level contingency reserve adjustment.. Portfolio risk management requires assessing aggregate risk exposure against the portfolio's risk appetite and threshold.

Answer

Update the Portfolio Strategic Plan to increase the budget ceiling without further assessment.

Answer

Terminate all projects that are currently over budget to bring the portfolio back into balance.

Answer

Initiate a project-level change request to adjust the budget of each project individually.

Question 15

If a portfolio's performance is consistently below targets, what should the manager do after completing the variance analysis?

Accepted Answer

Present the variance analysis and recommended actions to the governance board.. The manager must present findings to the steering committee to determine if the strategy or the portfolio mix needs modification.

Answer

Create a new Portfolio Management Plan.

Answer

Inform the project managers that they are failing.

Answer

Immediately cut the budget of all low-performing projects.

Question 16

A portfolio manager discovers that a project component is technically successful but does not align with the current strategic vision. What is the most likely outcome?

Accepted Answer

Propose the termination or pivot of the component.. If a project is not strategic, it should be removed to free resources for high-value work.

Answer

Ask the technical team to change the vision.

Answer

Keep the project because it is technically successful.

Answer

Continue the project but reduce its budget.

Question 17

When rebalancing a portfolio due to a budget cut, which projects should be prioritized?

Accepted Answer

The ones that support the highest strategic priority goals.. Projects with the highest contribution to strategic goals should be prioritized during budget constraints.

Answer

The ones that are closest to completion.

Answer

The ones managed by the most experienced managers.

Answer

The ones that have the highest number of team members.

Question 18

What is the primary role of the portfolio manager during the monitoring phase?

Accepted Answer

Ensuring the portfolio delivers the intended strategic value.. The portfolio manager ensures the portfolio remains aligned with strategy and delivers value.

Answer

Writing code for the projects.

Answer

Managing individual team members' daily work.

Answer

Approving every individual project invoice.

Question 19

A portfolio manager notices that the actual portfolio ROI is significantly lower than the forecasted ROI. What is the first step the manager should take to address this variance?

Accepted Answer

Conduct a variance analysis comparing actual performance against the Portfolio Management Plan.. The first step is to analyze the root cause of the variance by reviewing performance data against the Portfolio Management Plan before initiating changes.

Answer

Adjust the resource allocation for all active components.

Answer

Terminate underperforming components immediately.

Answer

Update the Portfolio Strategic Plan to align with lower ROI expectations.

Question 20

You are managing a portfolio where the 'Value Measurement Framework' shows consistent misalignment between component outcomes and strategic objectives. What is the most effective approach to rectify this?

Accepted Answer

Re-evaluate and potentially re-prioritize the portfolio component mix.. Adjusting the portfolio components ensures alignment with the current strategic direction defined in the Portfolio Strategic Plan.

Answer

Request a revision of the organization's corporate strategy.

Answer

Increase the frequency of status reporting from project managers.

Answer

Change the KPI definitions to show better alignment.