PFMP · Question #254
The CEO of an organization has requested a meeting with the portfolio manager to discuss the overall risks in achieving the portfolio objectives. Which information would be most beneficial for the…
The correct answer is D. Component selection criteria. Component selection criteria demonstrate how the portfolio manager rigorously evaluated and selected components based on their strategic alignment, feasibility, ROI, and risk tolerance - directly showing the CEO the foundation on which portfolio success is built. This is the…
Question
The CEO of an organization has requested a meeting with the portfolio manager to discuss the overall risks in achieving the portfolio objectives. Which information would be most beneficial for the portfolio manager to present during the meeting to demonstrate the likelihood of the portfolio's success?
Options
- AThe risk management plan
- BA cumulative frequency distribution chart
- CRisk response plans
- DComponent selection criteria
How the community answered
(32 responses)- A3% (1)
- B9% (3)
- C3% (1)
- D84% (27)
Explanation
Component selection criteria demonstrate how the portfolio manager rigorously evaluated and selected components based on their strategic alignment, feasibility, ROI, and risk tolerance - directly showing the CEO the foundation on which portfolio success is built. This is the most strategic and holistic view of why the portfolio is positioned for success. The risk management plan (A) describes how risk will be managed but does not demonstrate likelihood of success. A cumulative frequency distribution chart (B) is a quantitative risk tool, but it describes uncertainty rather than demonstrating success readiness. Risk response plans (C) address mitigation but are reactive, not demonstrative of overall portfolio health.
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