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PFMP · Question #124

For each portfolio component that a portfolio manager is prioritizing, information is available regarding alignment to strategy, return on investment (ROI), and investment risk. Which other piece of i

The correct answer is A. Dependencies. Understanding component dependencies is the additional information most critical to prioritization because a component's ranking may be constrained by or linked to other components.

Strategic Alignment

Question

For each portfolio component that a portfolio manager is prioritizing, information is available regarding alignment to strategy, return on investment (ROI), and investment risk. Which other piece of information about the components would best aid the portfolio manager in accomplishing this task?

Options

  • ADependencies
  • BDurations
  • CResources
  • DStakeholders

How the community answered

(68 responses)
  • A
    57% (39)
  • B
    7% (5)
  • C
    22% (15)
  • D
    13% (9)

Why each option

Understanding component dependencies is the additional information most critical to prioritization because a component's ranking may be constrained by or linked to other components.

ADependenciesCorrect

When prioritizing portfolio components, dependencies reveal which components must precede, enable, or block others - information that can directly override or constrain a prioritization decision even when ROI, risk, and strategic alignment are known. A high-ROI component may need to be deprioritized if it depends on another component that is not yet ready. Dependencies complete the prioritization picture in a way that durations, resources, or stakeholder lists do not.

BDurations

Durations indicate how long a component takes but do not directly reveal ordering constraints or linkages between components that affect prioritization.

CResources

Resource information is important for capacity planning but does not specifically identify the interdependencies that constrain or inform prioritization sequencing.

DStakeholders

Stakeholder information is relevant for engagement planning but does not provide the structural linkages between components needed to make sound prioritization decisions.

Concept tested: Component dependencies in portfolio prioritization

Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management

Topics

#Portfolio Prioritization#Portfolio Strategic Alignment#Portfolio Components#Dependencies Management

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