PFMP Online Practice Questions and Answers

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:

A. Balance the portfolio across the organization

B. Balance the portfolio according to categories

C. Balance the portfolio by business unit

D. Balance the portfolio in terms of expected value of benefits

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:

A. Prepare a model of the current configuration and modify it to determine future capacity requirements

B. Determine and document existing assumptions

C. Inventory staff members to assess their level of competencies and existing workload

D. Use resource leveling in an enterprise project management information system

During one of the review meetings, the governance board asked to know the progress with relation to benefits of one of the major programs in your portfolio; in this case you will advise the program manager to present

A. Program Benefits Report

B. Program Business Case

C. The status of his program to you and you will aggregate the information with information from other components and present it to the Governance board

D. Program Management Plan

You prepared a portfolio risk management plan when you replaced the previous portfolio manager three years ago. However, recent structural and execution risks have affected the portfolio adversely, resulting in lost opportunities and a decrease in overall return on investment. You are updating the risk management plan as now stakeholders can see its value. In doing so, you can use some portfolio process assets such as:

A. Lessons learned

B. Portfolio algorithms

C. Vision statements

D. Risk categories

Embracing a management-by-projects culture means there tends to be far more projects to pursue than available resources. An approach then is required to guide decisions as to components in the portfolio. A best practice to follow is to:

A. Set forth in the portfolio strategic plan a prioritization model

B. Develop a portfolio roadmap

C. Focus on both internal and external environmental changes

D. Focus on sustainment of project benefits

Your sponsor has urged you to analyze Portfolio Risk before the end-of-week governance board meeting as the CEO will be present and is interested in Portfolio risk data in particular. Currently, you do not have adequate risk information in order to analyze data and give recommendations. Which tool is the most suitable for you to use in this case?

A. Cumulative distribution

B. Weighted Ranking and Scoring Techniques

C. Delphi

D. Graphical Analytical methods

In a portfolio, data is an abundant asset, and managing the information aiming for a better decision making is critical. For this you use a variety of Quantitative and Qualitative analysis methods. Considering that you are currently working to quantitatively measure component values, however a few components have intangible benefits and can not be measured using quantitative analysis. How do you plan to proceed?

A. Subject Matter Experts

B. Benefits Realization

C. Using assumptions

D. Scoring models

Portfolio Prioritization Model is included in the Portfolio management plan and guides the ongoing decisions as to which portfolio components should be added, terminated, or changed; which of the following is correct regarding the Prioritization Model purpose and content?

A. All of the options

B. Ensures benefits are comprehensively and holistically taken into consideration

C. Contains criteria to ensure alignment to strategic goals, expected return on investment (ROI), investment risks, and dependencies

D. Establishes and tailors the decision-making rights and authorities

When developing the charter, you will use multiple inputs and documents of which the portfolio Strategic Plan is one. How is the strategic plan used in this case?

A. It is not an input to this process

B. The Portfolio Structure and Portfolio Manager's Authorizations are copied from the Portfolio Strategic Plan as is and incorporated in the Charter

C. It is updated based on the output of the Develop portfolio charter process

D. The prioritization model is used as a decision framework to structure the portfolio components

Your probability and impact assessment work is complete, and you are using the results to prepare the portfolio risk management plan. As you do so, it also is useful to:

A. Define the assurance levels of the risk and its performance measures

B. Validate with your stakeholders that your analysis meets their expectations

C. Communicate the results with others in the organization for greater transparency

D. Identify specific trends for each risk using qualitative and quantitative analysis