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

1. A. Analyze the risk for its overall impact on portfolio success
2. B. Determine an appropriate response and implement it as soon as the risk occurs
3. C. Monitor the situation as long as the risk is current
4. D. Strive to take a negative risk and turn it into a positive opportunity

Correct Answer: C

You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to success and you are coaching your team on the same. The Portfolio Risk Management Plan is an important document that is referenced throughout the portfolio life cycle. Which of the following is correct regarding its purpose and focus?

1. A. Updates standard criteria to allow the portfolio team to assess the risks that are identified
2. B. Identifies recipients for information associated with the portfolio management process
3. C. Shows how the portfolio component progress and resource-related issues and risks are integrated with the resource management activities
4. D. Articulates the options, preferences, and factors that will be considered in a specific portfolio

Correct Answer: A

Optimizing the portfolio is a major recurring process that the portfolio manager performs throughout the portfolio life cycle in order to balance the mix of portfolio components. During this process, the portfolio manager uses a number of graphical analytical methods to help him ease the process. Which of the following is not a graphical analytical method used in this process?

1. A. Pie Charts
2. B. None of the options
3. C. Risk v
4. D. Return charts
5. E. Histograms

Correct Answer: B

Following a major organizational restructuring, new portfolios are currently being initiated. You have been assigned the position of portfolio manager on one of the major portfolios and are currently in strategic management. You are currently performing cost-benefit analysis. What is part of this analysis?

1. A. Qualifies estimated costs and benefits and lists quantitative considerations of alternative portfolio components
2. B. Quantifies estimated costs and benefits and lists qualitative considerations of alternative portfolio components
3. C. Quantitative considerations of alternative portfolio components
4. D. Qualifying estimated costs and benefits

Correct Answer: B

You are currently in the process of defining a portfolio by forming the qualified list of components that will be later evaluated, selected and prioritized. What do you expect as outputs from this process?

1. A. Portfolio Management Plan updates, Portfolio Roadmap updates, Portfolio updates
2. B. Portfolio Management Plan updates, Portfolio Roadmap updates, Portfolio updates, Portfolio Strategic Plan updates
3. C. Portfolio Strategic Plan updates, Portfolio Roadmap updates, Portfolio updates
4. D. Portfolio Strategic Plan update, Portfolio Management Plan updates

Correct Answer: A