PfMP Portfolio Risk Management Practice Test 2 — 15 Questions

Question 1

Which of the following is an input to Portfolio Risk Identification?

Accepted Answer

Portfolio Strategic Plan.. The Portfolio Strategic Plan provides the goals and constraints that help identify risks.

Answer

Daily task lists of project staff.

Answer

Personal resumes of the board members.

Answer

Project team performance reviews.

Question 2

A risk is identified that could positively impact the portfolio's strategic goals. How should this be handled?

Accepted Answer

Analyze the opportunity and plan to enhance its realization.. Positive risks are 'opportunities' and should be pursued to maximize benefits.

Answer

Transfer the opportunity to an external contractor.

Answer

Ignore it, as risks are only for negative impacts.

Answer

Add it to the issues log immediately.

Question 3

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 4

What is the primary role of the Portfolio Manager regarding risk?

Accepted Answer

To establish and oversee the portfolio risk management process.. The portfolio manager is responsible for the overall risk management framework and monitoring.

Answer

To hide risks from the board until they are solved.

Answer

To write the detailed task plan for every project.

Answer

To fix every issue on every project personally.

Question 5

You are reporting portfolio risk status to the governance board. What is the most effective way to communicate this?

Accepted Answer

Present a high-level dashboard summarizing the portfolio's aggregate risk exposure.. A dashboard visualization that summarizes aggregate risk levels is best for leadership.

Answer

Read the entire risk register line by line.

Answer

Email a spreadsheet with all raw data points.

Answer

Tell them only about the smallest risks so as not to worry them.

Question 6

A risk response is proving ineffective. What should you do?

Accepted Answer

Re-assess the risk and develop a revised response strategy.. Re-evaluating and updating the response strategy is the standard corrective action.

Answer

Continue with the plan, hoping it works eventually.

Answer

Close the risk to remove it from the register.

Answer

Fire the project team responsible for the risk.

Question 7

Which THREE of the following are considered when assessing portfolio risk?

Accepted Answer

Strategic alignment of projects.. Portfolio risk assessment considers technical, financial, and strategic elements.

Answer

The frequency of office social events.

Answer

The color of the project office wallpaper.

Question 8

Which TWO of the following are primary objectives of portfolio risk management?

Accepted Answer

To align risk responses with the portfolio's strategic goals.. Ensuring the portfolio meets its strategic objectives and protecting its value are the core goals.

Answer

To reduce the workload of the project managers.

Answer

To increase the total number of projects in the portfolio.

Answer

To ensure every project is completed under budget.

Question 9

Which TWO of the following are appropriate portfolio risk response strategies for threats?

Accepted Answer

Mitigation.. Avoiding and Mitigating are two standard strategies in the risk management framework.

Answer

Enhancement.

Answer

Sharing.

Answer

Ignoring.

Question 10

Which THREE components are found in a Portfolio Risk Register?

Accepted Answer

Planned risk response.. The register must include risk identifiers, impact assessments, and response plans.

Answer

Project team lunch menu.

Answer

Personal salary data of project leads.

Question 11

Which TWO of the following are sources for identifying portfolio risks?

Accepted Answer

Project status reports.. Stakeholders and the project logs are vital sources of risk information.

Answer

The cafeteria menu.

Answer

Social media gossip channels.

Answer

Office climate control settings.

Question 12

Which THREE of the following are quantitative analysis techniques?

Accepted Answer

Decision tree analysis.. Monte Carlo, sensitivity analysis, and decision tree analysis are quantitative tools.

Answer

SWOT analysis.

Answer

Brainstorming.

Question 13

Which TWO are common triggers for a portfolio risk review?

Accepted Answer

A major milestone failure in a critical program.. Significant changes in strategy or major milestone failures are common triggers.

Answer

Arrival of the monthly coffee supply.

Answer

Change in office desk layout.

Answer

The start of a new work week.

Question 14

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 15

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.