The portfolio management plan documents responses to significant changes in strategic direction, which includes reviewing and:

Question

Options

• Aprioritizing rejected components to validate whether they support the new strategic direction.
• Bprioritizing only new components that may be required based on the new strategic direction.
• Crecommending increases to resources in order to support the new strategic direction.
• Drecommending which components should be terminated because they no longer align with the

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

Explanation

When strategic direction changes significantly, the most critical portfolio management action is to assess which active components no longer align with the new strategy and recommend their termination. Continuing misaligned components wastes resources and dilutes strategic focus. Option A is incorrect because rejected components are not active and reviewing them wastes effort. Option B is too narrow - focusing only on new components ignores existing ones that may now be misaligned. Option C (increasing resources) may occasionally be appropriate but is not the primary response to a strategic shift; alignment review and rebalancing come first. Recommending termination of non-aligned components is the core action that realigns the portfolio with the new strategic direction.

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