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PFMP · Question #273

You have just finished a major checkpoint in your portfolio and the portfolio has to undergo several changes in order to re-align with the strategies. One component of your portfolio has been cancelle

The correct answer is B. Authorize Portfolio. The Authorize Portfolio process handles the formal approval, continuation, and cancellation of portfolio components, including reallocation of resources from cancelled components.

Portfolio Governance

Question

You have just finished a major checkpoint in your portfolio and the portfolio has to undergo several changes in order to re-align with the strategies. One component of your portfolio has been cancelled and the resources are going to be reallocated to other components. Which process does these activities?

Options

  • AManage Supply & Demand
  • BAuthorize Portfolio
  • CManage Portfolio Oversight
  • DOptimize Portfolio

How the community answered

(55 responses)
  • A
    4% (2)
  • B
    76% (42)
  • C
    7% (4)
  • D
    13% (7)

Why each option

The Authorize Portfolio process handles the formal approval, continuation, and cancellation of portfolio components, including reallocation of resources from cancelled components.

AManage Supply & Demand

Manage Supply and Demand focuses on balancing resource capacity against demand, not on formal authorization or cancellation of components.

BAuthorize PortfolioCorrect

The Authorize Portfolio process is responsible for allocating resources, approving component inclusion, and cancelling components that no longer align with strategy. When a component is cancelled after a major checkpoint, this process governs the formal decision and ensures that freed resources are redirected to remaining active components. This aligns with the re-balancing activities triggered after strategic changes.

CManage Portfolio Oversight

Manage Portfolio Oversight monitors overall portfolio performance and compliance but does not directly authorize cancellations and resource reallocations.

DOptimize Portfolio

Optimize Portfolio evaluates and selects components for the portfolio mix but is not the process that formally cancels a component and reallocates its resources.

Concept tested: Authorize Portfolio process - component cancellation and reallocation

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

Topics

#Portfolio Governance#Portfolio Processes#Strategic Alignment#Resource Reallocation

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