Free Portfolio Management Professional Exam PfMP Exam Practice Test

A new regulatory mandate has been imposed by the government which highly affected your portfolio. Multiple regulatory components are requested to be added to the portfolio in order to comply with new governmental bank regulations. Initiating these components requires permission from

• Portfolio Manager
• Portfolio Sponsor
• Portfolio Governance Board
• Portfolio Components' teams

You have just recommended the Portfolio Strategic Plan and Portfolio to the governance board for approval. The portfolio board members informed you that they did not find what they were looking for in the strategic plan and that it needs to be reworked. What should have been part of your Strategic Plan?

• Allocation of funds for different types of initiatives
• List of components with their detailed information
• Timelines and Schedules
• Governance Model

Managing value is key to success as portfolio are undertaken to ultimately deliver an outcome that is strategically aligned and which delivers value to the organization. While managing value, the portfolio manager invokes the Benefits Realization Analysis activity. Which of the following is part of this activity?

• Assessing Changes, dependencies and impacts
• Indicating Resource bottlenecks and over or under allocations
• Allowing the portfolio's governing bodies to evaluate the expected net benefits of a given portfolio or portfolios to prioritize portfolio efforts
• All of the options

Your company is currently on the verge of bankruptcy due to the lack of transparency within the organization; this alerted the CEO to take decisive actions and request that new reporting lines be established in order to be fully transparent. Following this, the portfolio structure has changed to cope with the new reporting lines. Where is this change reflected when it comes to portfolio documents?

• Portfolio Charter updates
• Portfolio Strategic Plan updates
• Portfolio Management Plan updates
• Portfolio Roadmap updates

One of your component managers came to you to tell you about a risk affecting his component that will badly impact the component and might affect the portfolio. After assessment, the risk turned out to be of low probability with high impact. What do you do as a portfolio manager?

• Inform him to submit a change request to raise the component contingency because of this risk
• Inform the component manager to add the risk to the risk register and follow up on it closely
• Inform the component manager to add the risk to the risk register, assign a senior risk owner to it in order to follow up on it closely
• Inform him that he does not need to worry, you will have a risk contingency reserve for his risk at a portfolio level

Your organization conducted an OPM3 assessment focusing on its best practices in portfolio management and also on those that were needed. The OPM3 Certified Professional felt greater attention was needed managing strategic change. This means:

• The project charter should be reviewed
• The strategic plan should be updated
• Budget allocation can be handled more effectively
• It is easier to determine which components will require specialized resources

While a variety of prioritization approaches are available and are useful in portfolio management and many software packages support the various approaches, it is important to recognize:

• Resource constraints
• Mandatory criteria
• Allocation of funds across categories based on business value
• Methods to determine which components should receive the highest priority

Due to strategic changes, one of the sub-portfolios in your portfolio has been decided to be canceled because it no longer meets the new market demands. What is your next step as a portfolio manager?

• Start terminating the component and return back the remaining resources to the resource pool
• Analyze the impact of this cancellation on the overall portfolio and recommend a decision to the governance board
• Meet the sub-portfolio's team in order to assess the impact
• Consider it as a normal change, submit a change request for cancellation and wait for the governance board approval

Due to market technological changes, your company got impacted and was urged to revise its portfolios. You are currently revising your portfolio to determine the required changes in the component mix. Which of the following options shows a clear path from the 'as-is' to the 'to-be' vision?

• Portfolio
• Portfolio Charter
• Portfolio Strategic Plan
• Portfolio Roadmap

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?

• Cumulative distribution
• Weighted Ranking and Scoring Techniques
• Delphi
• Graphical Analytical methods