PfMP Practice Test 1 — 25 Questions

Question 1

You are assessing the 'aggregate risk exposure' of a portfolio. What is the most critical factor to consider?

Accepted Answer

The dependencies and correlations between portfolio risks.. Interdependencies and correlations are the key factors that differentiate aggregate risk from the sum of parts.

Answer

The total budget allocated to the project office.

Answer

The average experience level of the project managers.

Answer

The number of projects currently active.

Question 2

Which THREE are key elements of a portfolio risk management culture?

Accepted Answer

Accountability for risks.. Transparency, accountability, and proactive communication are essential for a healthy risk culture.

Answer

Hiding all risks until the end of the year.

Answer

Blaming staff for project delays.

Question 3

Which document serves as the foundation for portfolio governance?

Accepted Answer

Portfolio Charter. The Portfolio Charter establishes the authority and parameters for the entire portfolio.

Answer

Governance Review Report

Answer

Portfolio Strategic Plan

Answer

Project Management Plan

Question 4

A portfolio manager discovers that a major program is exceeding its budget due to scope creep. What should be done to restore portfolio performance?

Accepted Answer

Invoke the portfolio change control process to assess the impact on portfolio value.. The portfolio manager must use change control processes to manage scope and impact to the overall portfolio budget.

Answer

Suspend the program until the end of the fiscal year.

Answer

Approve the budget increase to prevent project failure.

Answer

Reduce the budgets of other programs to accommodate this one.

Question 5

Portfolio performance reporting should occur at what level of granularity for the executive steering committee?

Accepted Answer

Summary-level status on strategic goals and financial health.. Executives need summarized, high-level reporting on strategic objectives rather than granular project task data.

Answer

Resource utilization rates per employee.

Answer

Individual task-level completion status.

Answer

Detailed project risk registers.

Question 6

A portfolio manager notices that the portfolio roadmap and the actual execution are misaligned. What is the first thing to verify?

Accepted Answer

Review the Portfolio Strategic Plan and the current Portfolio Charter for any strategic shifts.. Before changing the roadmap, verify if the execution failure is a tactical issue or if the strategy has shifted.

Answer

Replace the project managers.

Answer

Update the roadmap immediately to reflect current status.

Answer

Increase the portfolio budget to get projects back on track.

Question 7

If a portfolio component fails its governance review, what is the most appropriate action?

Accepted Answer

Assess the impact on the portfolio and determine if the component should be corrected, re-planned, or terminated.. Governance reviews exist to catch issues early. Depending on the severity, the component must be corrected or terminated to protect portfolio value.

Answer

Ask the project manager to improve the report format.

Answer

Terminate the project immediately.

Answer

Continue the project as it is already underway.

Question 8

Which TWO documents are essential for Portfolio Charter maintenance?

Accepted Answer

Portfolio Performance Reports.. Changes to the charter must be based on the latest strategic direction and the current performance of the portfolio.

Answer

The grocery shopping list for the office breakroom.

Answer

The social media profiles of the project staff.

Answer

The current weather forecast.

Question 9

A component manager asks for authorization for a project that was not in the original roadmap. What should the portfolio manager do?

Accepted Answer

Require the component manager to submit a business case for review against current strategic goals.. Governance requires all new components to be vetted through the portfolio authorization process before being added to the roadmap.

Answer

Add it to the roadmap and inform the governance committee later.

Answer

Approve it if the project has sufficient budget.

Answer

Reject the proposal immediately as it is not on the roadmap.

Question 10

During a resource review, you find that one department is consistently over-allocated while another is under-allocated. What is your strategy?

Accepted Answer

Implement cross-departmental resource pooling and leveling.. Cross-departmental resource balancing is a key portfolio management responsibility.

Answer

Force the under-allocated department to take on the other's work without training.

Answer

Let the departments resolve it themselves.

Answer

Cut the projects in the over-allocated department.

Question 11

During a governance audit, it is found that project managers are not using the standardized reporting templates defined in the Portfolio Governance Plan. What is the best action?

Accepted Answer

Investigate the root cause of non-compliance and revise the process or training as needed.. Governance compliance requires adherence to defined processes; identifying the root cause allows for systemic improvement.

Answer

Sanction the project managers for non-compliance.

Answer

Manually update all reports to comply with the standard.

Answer

Ignore the finding if the projects are still achieving their KPIs.

Question 12

What is the purpose of authorizing a portfolio component?

Accepted Answer

To formally approve and allocate resources to the component.. Authorization formally commits resources and budget, signaling that the component is aligned with the strategy and ready for execution.

Answer

To hire the project manager.

Answer

To update the portfolio audit records.

Answer

To notify stakeholders that the project is finished.

Question 13

A portfolio manager needs to ensure that the governance structure is optimized for rapid decision-making. Which approach is best?

Accepted Answer

Clearly define decision rights and thresholds for escalation within the Portfolio Governance Plan.. Clear roles, responsibilities, and defined decision-making authority reduce bureaucracy and speed up governance.

Answer

Delegate all decisions to the project managers.

Answer

Remove all governance reviews to reduce overhead.

Answer

Increase the frequency of governance committee meetings.

Question 14

When a portfolio risk occurs and impacts the strategic goals, this event is now classified as:

Accepted Answer

A portfolio issue.. Once a risk occurs, it is officially recorded as an issue.

Answer

An external audit finding.

Answer

A project failure.

Answer

A new risk.

Question 15

If the portfolio's realized benefits are significantly lower than planned, what is the first step the portfolio manager should take?

Accepted Answer

Perform a root cause analysis of the benefit shortfall.. Before changing the portfolio, you must analyze why the benefits are not being realized to see if it is a strategy, execution, or alignment issue.

Answer

Double the project budget.

Answer

Abandon the strategy.

Answer

Fire the project managers.

Question 16

Which THREE stakeholders are typically involved in the portfolio strategic planning process?

Accepted Answer

Portfolio manager.. Portfolio planning requires input from executive leadership, the portfolio manager, and relevant functional heads.

Answer

The office cleaning staff.

Answer

Local delivery drivers.

Question 17

How does a portfolio audit contribute to portfolio governance?

Accepted Answer

By evaluating the effectiveness of the governance framework and ensuring process compliance.. Audits identify gaps, process failures, and non-compliance, allowing for continuous improvement of the governance framework.

Answer

By authorizing the next year's budget.

Answer

By enforcing project management compliance with technical standards.

Answer

By selecting new projects for the portfolio.

Question 18

You are reviewing the portfolio governance model. Why would you implement a tiered governance approach?

Accepted Answer

To allow for tailored oversight commensurate with the risk and complexity of components.. Tiered governance allows for different levels of oversight based on the complexity, risk, and strategic importance of the portfolio components.

Answer

To prevent project managers from speaking to the executive committee.

Answer

To reduce the number of employees required in the PMO.

Answer

To comply with outdated regulatory requirements.

Question 19

Which governance practice ensures that the portfolio remains aligned with changing market conditions?

Accepted Answer

Conducting regular portfolio reviews against the Portfolio Strategic Plan.. Periodic reviews of the portfolio against the current strategic context are necessary to ensure ongoing alignment.

Answer

Maintaining a static Portfolio Charter.

Answer

Strictly adhering to the initial project plan.

Answer

Limiting the number of components in the portfolio.

Question 20

Which of the following is a key component of the portfolio monitoring process?

Accepted Answer

Comparing actual portfolio performance against the Portfolio Management Plan.. Monitoring involves checking both actual progress and ongoing strategic alignment.

Answer

Selecting new vendors.

Answer

Updating individual project charters.

Answer

Managing daily project tasks.