Assume your telecom company is time constrained and needs to be first to market with new smart phones with features that are different from those of the competition and also have the traditional features desired by your existing customers. The Portfolio Review Board meets weekly to assess performance and to consider new components. Lack of technical resources is a recurring issue. To make the case for acquiring new resources, you decided to assess capability and capacity. This approach is:

1. A. Part of the PMIS
2. B. Included in finite capacity planning and reporting
3. C. Used to prepare a detailed forecast of ongoing and future capability needs
4. D. Used to identify resource capacity and capability

Correct Answer: B

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 incorporated in all process groups as well. As a portfolio manager, how do you map the risk management elements to process groups?

1. A. Risk Planning (Defining) - Risk Assessment & Response (Aligning)
2. B. Risk Assessment (Defining) - Risk Planning (Aligning) - Risk Response (Authorizing & Controlling)
3. C. Risk Planning (Defining) - Risk Assessment (Aligning) - Risk Response (Authorizing & Controlling)
4. D. Risk Planning (Defining) - Risk Assessment (Planning) - Risk Response (Authorizing & Controlling)

Correct Answer: C

The Portfolio Management Plan is an important document that is referenced throughout the portfolio life cycle. Which of the following is correct regarding the Portfolio Management Plan purpose and focus?

1. A. Identifies recipients for information associated with the portfolio management process
2. B. Articulates the options, preferences, and factors that will be considered in a specific portfolio
3. C. Describes the approach and intent of management in identifying, approving, procuring, prioritizing, balancing, managing, and reporting a portfolio
4. D. Shows how and when the portfolio resources will be planned, balanced, and allocated to the portfolio components

Correct Answer: C

You are working to optimize your portfolio and determine a priority list of components to pursue. In your product development company, of the triple constraints, quality and scope dominate. This does not imply that schedule and budget are not important, but since the company requires regulatory approval for its products, quality dominates the company. Quality goals that are too low may lead to end-user dissatisfaction; however, goals that are too high may be too costly to the company. Therefore it is important to consider:

1. A. Market analysis
2. B. The value proposition
3. C. Cash-flow requirements
4. D. Risk analysis and assessment

Correct Answer: A

Your company has a stated policy that all stakeholders are to be treated in an ethical manner. It is one of the largest project management training firms in the world and is a Registered Educational Provider with the Project Management Institute as well as with other associations. It is active in portfolio management to ensure it is offering the most beneficial products and services, both leading edge and traditional, to its customers. Its policy toward its stakeholders is:

1. A. Documented in the stakeholder expectations plan
2. B. Considered as a legitimate right
3. C. Part of the portfolio communications strategy
4. D. A portfolio governance process

Correct Answer: B