Free Portfolio Management Professional Exam PfMP Exam Practice Test

When managed correctly, the balanced scorecards can change the way an organization does business. Balanced scorecards keep focus on results. As a portfolio manager, you know that the purpose of using the balanced scorecards is

• All of the options
• Translate a high level strategic plan into an operational action plan
• Measure performance against goals
• Bring a feedback loop to strategic planning

Although it has taken significant time, you and your team inventoried all the work under way in your new product development company. This list of components should be:

• Included in the portfolio roadmap
• Part of the portfolio management plan
• Prioritized for effective resource allocation
• Maintained by the portfolio manager and continually updated

Assume it was your suggestion to the executive team as the newly appointed Chief Financial Officer for your organization to implement portfolio management. While someone has been identified to be the portfolio manager, you are developing the charter and the structure. In doing so, guidance is provided by the:

• Portfolio strategic plan
• Organization's strategic plan
• Portfolio roadmap
• Plans, policies, and documentation of stakeholder expectations

As a portfolio manager you will use a variety of artifacts and documents that will help you better manage the portfolio and better communicate progress and status with stakeholders. The roadmap is considered the most used document in the portfolio and eases your work being able to present the status on a single graphical representation. Early on during the portfolio lifecycle, you prepare the roadmap. An output of this process is

• Portfolio update, Portfolio Charter update, Portfolio Roadmap
• Portfolio Roadmap
• Portfolio update, Portfolio Roadmap
• Portfolio Charter update, Portfolio Roadmap

You are the portfolio manager for a large and complex portfolio with a low risk appetite. You are currently planning for risk management, multiple investment choice tools are used as part of the quantitative and qualitative analyzes. Which of the following tools focuses on pricing and sales forecast?

• Market Payoff variability
• Trade-Off Analysis
• Market Requirement Variability
• Budget Variability

Two functional managers within your portfolio are arguing about one scarce resource, and each one is claiming that the resource should be assigned to them. What should you do as a portfolio manager in order to solve this issue?

• Perform a capacity and capability analysis and tender the recommendation on resource allocation to the governance board
• Sit with the two functional managers privately and let them agree on a solution
• Perform a capacity and capability analysis in order to allocate the scarce resource
• Do prioritization analysis and allocate the resource accordingly

Each portfolio risk should have a designated person as its owner. As the portfolio manager assigns the owner, the main responsibility is to:

• Analyze the risk for its overall impact on portfolio success
• Determine an appropriate response and implement it as soon as the risk occurs
• Monitor the situation as long as the risk is current
• Strive to take a negative risk and turn it into a positive opportunity

Working to ensure the portfolio management process is one that is followed and is embraced has been a major challenge. As the portfolio manager, assume you set up meetings with the Portfolio Governance Group bi-weekly since there is constant change in your telecom company. You also want the portfolio process to be transparent. To do so, a useful tool to communicate status is:

• Reports on funding decisions
• A governance decision register
• The portfolio roadmap
• Key portfolio milestones

You have been managing a complex portfolio for the banking industry and it is sought to be the shifting to the top-notch digital banking era for one of the major international banks. You know you will have changes along the lifecycle and you plan to manage them correctly in order to maintain alignment and correct execution. If you need to reflect changes based on cost, requirements, and schedule. To which of the following section in the portfolio management plan will you refer?

• Performance management
• Manage strategic change
• Resource management
• Change control and management

Communication is one of the largest activities that the portfolio manager does along the portfolio lifecycle. As an experienced portfolio manager, you know that communication and information needs vary between portfolios, programs and projects. How do you define the difference in those three levels of Project Management?

• Communications at a Program level are more diversified than at project and portfolio levels Communications at a Portfolio level are more diversified than at project and program levels
• Communications at a Project level are more diversified than at portfolio and program levels
• Criticality of the communication with relation to the organization is highest at a project level as the business value is acquired at this level