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PFMP · Question #242
PFMP Question #242: Real Exam Question with Answer & Explanation
The correct answer is C: seek the executive sponsor's approval for the required contingency reserve.. See the full explanation below for the reasoning.
Portfolio Governance
Question
A component manager asks to include a contingency reserve in the budget for some common risks that are valid across several other components in the portfolio. Including this reserve will reduce the component's return on investment (ROI) below acceptable standards. The portfolio manager should recommend that the component manager:
Options
- Aexclude the component contingency reserve.
- Binclude the contingency reserve in the component's budget.
- Cseek the executive sponsor's approval for the required contingency reserve.
- Dreview the component scope to eliminate the risk.
Topics
#Portfolio Governance#Financial Management#Risk Management#Executive Decision Making
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