One of the primary purposes for which an organization establishes a portfolio governance model is to:

Question

Options

• Aselect and prioritize components and allocate limited internal resources to accomplish
• Bdefine the decision-making process through which new components are initiated and existing
• Cselect and prioritize components, mitigate risks, and ensure revenue goals are met.
• Ddefine the decision-making process through which new components are initiated, put on hold, or

• A
  6% (2)
• B
  3% (1)
• C
  3% (1)
• D
  88% (30)

Explanation

Portfolio governance is fundamentally about establishing a structured, consistent decision-making framework. This includes how new components enter the portfolio, how existing ones are paused, terminated, or reprioritized, and who has the authority to make those decisions. Answer A describes an activity (selecting/prioritizing) but omits the decision-process framework. Answer B is similar but incomplete. Answer C conflates governance with financial and risk management functions. Answer D most accurately captures the core purpose: governance provides the rules and processes by which portfolio decisions are made and executed.

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