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.
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)- A4% (2)
- B76% (42)
- C7% (4)
- D13% (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.
Manage Supply and Demand focuses on balancing resource capacity against demand, not on formal authorization or cancellation of components.
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.
Manage Portfolio Oversight monitors overall portfolio performance and compliance but does not directly authorize cancellations and resource reallocations.
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
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