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106 · Question #20

Which is an objective of portfolio management?

The correct answer is D. To ensure a single set of investment criteria are applied to all change initiatives. Option D is correct because portfolio management exists to provide consistent, fair governance across all change initiatives - applying a single set of investment criteria ensures that every project or programme is evaluated on the same basis, enabling rational prioritization…

Understanding the purpose, scope, objectives and benefits of portfolio management, and the key terms and concepts

Question

Which is an objective of portfolio management?

Options

  • ATo ensure the portfolio contains all business change within the organization
  • BTo actively manage the deployment of project and programme staff
  • CTo ensure the collection of change initiatives is sufficient to achieve the required strategic
  • DTo ensure a single set of investment criteria are applied to all change initiatives

How the community answered

(26 responses)
  • A
    4% (1)
  • C
    4% (1)
  • D
    92% (24)

Explanation

Option D is correct because portfolio management exists to provide consistent, fair governance across all change initiatives - applying a single set of investment criteria ensures that every project or programme is evaluated on the same basis, enabling rational prioritization and alignment with organizational strategy.

Why the distractors are wrong:

  • A is incorrect because portfolio management does not aim to capture every business change; it selects and prioritizes the right initiatives strategically - inclusion is selective, not exhaustive.
  • B describes a resource or HR management function; portfolio management operates at the strategic level of initiative selection and oversight, not day-to-day staff deployment.
  • C sounds plausible but mischaracterizes the goal - portfolio management is about having the right mix of initiatives (aligned, balanced, prioritized), not simply ensuring there are enough of them.

Memory tip: Think of a portfolio manager like a fund manager - they don't invest in everything, they apply consistent criteria to choose the best investments that deliver strategic returns. "Single set of criteria = fair, strategic selection" is the core idea behind D.

Topics

#investment criteria#portfolio governance#portfolio objectives#strategic alignment

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