Which is a portfolio definition practice?

Question

Options

• AGovernance alignment
• BReference class forecasting
• CUnderstand
• DResource management

• A
  88% (45)
• B
  6% (3)
• C
  4% (2)
• D
  2% (1)

Explanation

Governance alignment is a portfolio definition practice because defining a portfolio requires establishing how it aligns with the organization's governance structures, authorities, and strategic objectives - this shapes which components belong in the portfolio and how decisions about them are made.

Why the distractors are wrong:

• B. Reference class forecasting is an estimation technique used in project planning, where past similar projects inform cost/time predictions - it belongs to planning, not portfolio definition.
• C. Understand is not a recognized portfolio management practice category; it may be a distractor drawn from unrelated frameworks or simply a generic term.
• D. Resource management falls under portfolio optimization or balancing practices, not definition - it comes after the portfolio has been defined.

Memory tip: Think of "definition" as answering "What is this portfolio and does it belong here?" Governance alignment is what gives you the authority and criteria to answer that question, making it the natural fit for the definition phase.

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