How does portfolio management support effective corporate governance?

Question

Options

• APortfolio management assesses whether the programmes and projects within the portfolio are
• BPortfolio management develops delivery capability across the organization
• CPortfolio management aligns performance and portfolio reporting in terms of timing and content
• DPortfolio management links delivery of the organization's strategic objectives with investment in

• A
  6% (2)
• B
  3% (1)
• C
  3% (1)
• D
  89% (32)

Explanation

Option D is correct because corporate governance is fundamentally about accountability and ensuring organizational resources are directed toward strategic aims - portfolio management is the mechanism that explicitly connects investment decisions (funding programmes and projects) to the delivery of strategic objectives, providing the oversight and justification that governance demands.

Why the distractors fall short:

• A (assessing programmes/projects) describes a monitoring or review function - useful, but a sub-activity within portfolio management, not the defining link to governance.
• B (developing delivery capability) is an organizational development benefit of portfolio management, not a governance mechanism - it's about building skills, not strategic accountability.
• C (aligning reporting timing and content) is a coordination or communication activity; while reporting informs governance, synchronizing report schedules is too narrow to represent how portfolio management supports governance overall.

Memory tip: Associate governance with the question "Are we spending our money on the right things?" - Portfolio management answers that question by linking investment to strategic objectives, which is the essence of option D. If you remember "governance = strategic investment accountability," D will always stand out.

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