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PFMP · Question #133

When are portfolio components evaluated and compared in an organization that has a low risk tolerance and a business strategy focused on increasing market share, revenue, and profits for the organizat

The correct answer is B. Throughout the portfolio life cycle. Organizations with low risk tolerance and aggressive growth strategies must evaluate and compare portfolio components continuously throughout the entire portfolio life cycle to maintain alignment and manage risk.

Portfolio Performance Management

Question

When are portfolio components evaluated and compared in an organization that has a low risk tolerance and a business strategy focused on increasing market share, revenue, and profits for the organization?

Options

  • AWhen developing the portfolio roadmap
  • BThroughout the portfolio life cycle
  • CAfter each component's phase gate review
  • DWhile developing the portfolio charter

How the community answered

(27 responses)
  • A
    4% (1)
  • B
    85% (23)
  • C
    7% (2)
  • D
    4% (1)

Why each option

Organizations with low risk tolerance and aggressive growth strategies must evaluate and compare portfolio components continuously throughout the entire portfolio life cycle to maintain alignment and manage risk.

AWhen developing the portfolio roadmap

Developing the portfolio roadmap is a planning phase activity and does not provide the continuous evaluation needed to manage ongoing risk and strategic alignment.

BThroughout the portfolio life cycleCorrect

Continuous evaluation throughout the portfolio life cycle is necessary because low risk tolerance demands ongoing vigilance to detect and respond quickly to deviations, while strategic objectives such as increasing market share and revenue require constant assessment of whether each component is still delivering value and remains the best use of resources.

CAfter each component's phase gate review

Phase gate reviews occur at discrete milestones and are insufficient for an organization with low risk tolerance that requires more frequent and continuous component monitoring.

DWhile developing the portfolio charter

Developing the portfolio charter is a one-time initiation activity and does not support the ongoing evaluation and comparison of components throughout the life cycle.

Concept tested: Continuous portfolio component evaluation with low risk tolerance

Topics

#Portfolio Performance Management#Portfolio Life Cycle#Strategic Alignment#Value Maximization

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