PFMP · Question #221
What should a portfolio manager use to make effective decisions regarding performance metrics?
The correct answer is C. Portfolio governance model process. The portfolio governance model process defines the decision-making framework, criteria, authority levels, and procedures that guide how a portfolio is managed - including how performance metrics are evaluated and acted upon. It is the structural mechanism through which all…
Question
What should a portfolio manager use to make effective decisions regarding performance metrics?
Options
- APortfolio lessons learned database
- BPortfolio performance indicator system
- CPortfolio governance model process
- DPortfolio management information system (PMIS)
How the community answered
(21 responses)- B5% (1)
- C95% (20)
Explanation
The portfolio governance model process defines the decision-making framework, criteria, authority levels, and procedures that guide how a portfolio is managed - including how performance metrics are evaluated and acted upon. It is the structural mechanism through which all performance-related decisions are made. A PMIS (D) stores and distributes information but does not itself drive decision-making. A performance indicator system (B) tracks values but does not prescribe how to act on them. A lessons learned database (A) provides historical context but is not a decision-making framework. The governance model process is the correct answer because it provides the structured process by which performance data is reviewed and decisions are authoritatively made.
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