nerdexam
PMI

PFMP · Question #212

A project manager reports that adding a dependency to a project may decrease the overall project cost. Other project managers raise concerns regarding changing portfolio dependencies. How should the…

The correct answer is A. Perform a scenario analysis to identify possible collateral outcomes of modifying dependencies. When a dependency change may affect multiple portfolio components, scenario analysis must be performed first to identify all potential collateral outcomes before any decision is taken.

Portfolio Performance

Question

A project manager reports that adding a dependency to a project may decrease the overall project cost. Other project managers raise concerns regarding changing portfolio dependencies. How should the portfolio manager respond?

Options

  • APerform a scenario analysis to identify possible collateral outcomes of modifying dependencies.
  • BRefer to the risk management plan, develop a risk response, and assign an owner.
  • CUpdate the portfolio roadmap and overall portfolio cost for inclusion in the next status report.
  • DRegister the opportunity and perform a probability and impact assessment to determine how to

How the community answered

(43 responses)
  • A
    65% (28)
  • B
    5% (2)
  • C
    21% (9)
  • D
    9% (4)

Why each option

When a dependency change may affect multiple portfolio components, scenario analysis must be performed first to identify all potential collateral outcomes before any decision is taken.

APerform a scenario analysis to identify possible collateral outcomes of modifying dependencies.Correct

Scenario analysis evaluates the possible ripple effects of modifying portfolio dependencies across all components, enabling the portfolio manager to understand the full range of collateral outcomes - both positive and negative - before authorizing any dependency change.

BRefer to the risk management plan, develop a risk response, and assign an owner.

Referring to the risk management plan and assigning a risk owner is a reactive step that presupposes the risk is already understood; scenario analysis is needed first to surface what risks exist.

CUpdate the portfolio roadmap and overall portfolio cost for inclusion in the next status report.

Updating the roadmap and cost figures is premature until the full impact of the dependency modification has been assessed through scenario analysis.

DRegister the opportunity and perform a probability and impact assessment to determine how to

Registering an opportunity and performing a probability/impact assessment addresses a single component-level item, not the portfolio-wide dependency effects raised by multiple project managers.

Concept tested: Scenario analysis for portfolio dependency change management

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

Topics

#Portfolio Dependencies#Scenario Analysis#Portfolio Decision Making#Portfolio Performance Management

Community Discussion

No community discussion yet for this question.

Sign up to join the discussion
Full PFMP Practice