PFMP Online Practice Questions and Answers

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 delivery of Business Value optimized?

A. Portfolio

B. Project

C. Program

D. Operational

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. You are currently developing the guidelines and approaches for managing risks and are looking for methods to help you. What are you looking for?

A. Weighted Ranking and scoring techniques, Quantitative and Qualitative Analysis

B. Weighted Ranking and scoring techniques, Pf Component inventory, Categorization

C. Weighted Ranking and scoring techniques, Graphical Analytical Methods, Quantitative and Qualitative Analysis

D. Capability and Capacity, Weighted Ranking and scoring techniques, Graphical Analytical methods, Quantitative and Qualitative Analysis

One of the major steps for a portfolio manager is to know which components qualify to be included in the mix of components that will achieve the strategic objectives sought by the portfolio. As a program manager, you will use a variety of methods to help you achieve this purpose. Which of the following are valid tools and techniques?

A. Capability and Capacity Analysis, Weighted Ranking and scoring techniques, Graphical Analytical Methods, Quantitative and Qualitative Analysis, PMIS

B. Integration of Subsidiary Plans, Organizational Structure Analysis, Elicitation techniques

C. Weighted Ranking and scoring techniques, Portfolio Component inventory, Categorization

D. Capability and Capacity Analysis, Weighted Ranking and scoring techniques, Graphical Analytical Methods, Quantitative and Qualitative Analysis

Your company has multiple portfolios on the way and a variety of different clients and industries. Risk levels are high due to recent governmental regulations and the company has recently been penalized due to a non-compliance to one of the standards. You know that you need to closely managing this. As a result, you will be come out with

A. Portfolio Management Plan updates, Portfolio updates, Portfolio Reports, Enterprise Environmental Factors updates

B. Portfolio Management Plan updates, Organizational Process Assets updates, Portfolio Process Assets updates, Portfolio updates

C. Portfolio Management Plan updates, Organizational Process Assets updates, Portfolio Reports, Enterprise Environmental Factors updates

D. Portfolio Management Plan updates, Organizational Process Assets updates, Portfolio Process Assets updates, Portfolio Reports

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?

A. Delays in delivery of portfolio component results may adversely affect the value derived from the portfolio

B. It is not used in managing the portfolio value

C. Dependencies shown at the roadmap level have negative impacts on the value realized

D. Dependencies shown at the roadmap level have positive impacts on the value realized

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:

A. Show the data you plan to collect will be analyzed

B. Provide credibility for a portfolio management process

C. Meet the organization's objectives

D. Push information to stakeholders on portfolio status

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:

A. Add in blue to show completed components

B. Show dependencies between components with a different color

C. Set it up to show the organizational value areas in the company

D. Use a standardized format across components

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:

A. Portfolio performance plan

B. Portfolio strategic plan

C. Portfolio management plan

D. Portfolio financial plan

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?

A. Reporting and data accuracy

B. Organizational Integrity

C. Time, cost and scope commitments

D. Issues with Product development

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 optimizing portfolio, what is the purpose of using this analysis?

A. To study the capability of resources, match them against the portfolio's objectives and goals, and translate the capability into what capacity is possible to meet the portfolio demands

B. Performed to understand the human, financial, and asset capacity and capability of the organization in order to select, fund, and execute portfolio components

C. To understand how much work is able to be performed based on the resources available (capacity), as well as the ability of the organization to source and execute the selected portfolio

D. It enables the organization to achieve maximum portfolio benefits given current resource constraints

Having worked in portfolio management for several years, assume you were hired as the portfolio manager for a Real Estate Investment Trust, one of the largest in your country that specializes in apartments. The company continues to grow and wants to maximize value and profits for its investors. As you set up processes and procedures for portfolio management, you know from past experience that buy in from executives is insufficient. As you prepare a communications strategy, you focus on:

A. Satisfying important information needs of stakeholders

B. Surveying stakeholders through a questionnaire to determine information requirements

C. Using focus groups to assist in determining information needs

D. Focusing first on the executive team's communications requirements and then involving others

Risk management is an integral part of project, program and portfolio management and is invoked throughout the project, program and portfolio life cycle. When it comes to managing portfolio risks, which of the following activities is used

A. Risk Response

B. Risk Assessment and Risk Response

C. Risk Planning

D. Risk Assessment

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?

A. Change Analysis

B. Gap Analysis

C. Readiness Assessment

D. Stakeholder Analysis

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?

A. Budget Variability

B. Market Payoff variability

C. Time-To-Market Variability

D. Trade-Off Analysis

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:

A. Assign components to predefined categories

B. Prepare a flowchart

C. Organize ideas from stakeholders into logical groupings

D. Perform a structure analysis of roles and responsibilities