Your company's water treatment center serves three cities. Tests are conducted each day to see if the water is safe to drink. On Thursday, E coli were found in the water, but the water authority did not notify the citizens in the three cities. Instead, the citizens learned on Friday, the water was now safe to drink. The citizens are in an uproar, and your company is to blame. It is obvious one of the problems is the aging infrastructure and limited resources. To best optimize the portfolio, your CEO asked you to:

1. A. Reallocate financial and other resources to new components to avoid this problem in the future
2. B. First determine why citizens were not aware of the problem
3. C. Analyze the testing methods in use for effectiveness
4. D. Analyze the physical needs

Correct Answer: D

As the portfolio manager you have worked to consider the complexities involved of the interdependencies in your programs, projects, and ongoing work. As your portfolio process has been implemented for three years, a key challenge is that senior executives tend to change priorities often even though programs and projects are being implemented. Often these programs and projects are cross-functional, and the result is your process is not coordinated. You recognize there is a need to change, and you met with the Chair of the Portfolio Review Board and have her support for a transparent approach for portfolio standards and prioritization. You should:

1. A. Revise the balancing process
2. B. Revise the portfolio management plan
3. C. Revise the scoring model
4. D. Set up a standard method to communicate change

Correct Answer: B

As part of the strategic alignment, you Identify prioritization criteria (e.g., legislative, dependencies, ROI, stakeholder expectations, strategic fit) using information gathering and analysis techniques in order to

1. A. Create portfolio scenarios
2. B. Understand the strategic priorities
3. C. Create a basis for decision making
4. D. Provide a guiding framework to operationalize the organizational strategic goals and objectives

Correct Answer: C

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?

1. A. Inform him to submit a change request to raise the component contingency because of this risk
2. B. Inform the component manager to add the risk to the risk register and follow up on it closely
3. C. 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
4. D. Inform him that he does not need to worry, you will have a risk contingency reserve for his risk at a portfolio level

Correct Answer: D

Various people are responsible for communications to different stakeholder groups, both internal and external to the organization. These delegations of authority are:

1. A. Organizational process assets
2. B. Contained in the portfolio performance plan
3. C. A section in the portfolio communication management plan
4. D. Portfolio process assets

Correct Answer: D