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PFMP · Question #356

Due to strategic changes, one of the sub-portfolios in your portfolio has been decided to be canceled because it no longer meets the new market demands. What is your next step as a portfolio manager?

The correct answer is A. Start terminating the component and return back the remaining resources to the resource pool. Once a governance decision to cancel a component has been made, the portfolio manager's responsibility is to execute that decision by initiating termination and releasing resources back to the pool.

Portfolio Governance

Question

Due to strategic changes, one of the sub-portfolios in your portfolio has been decided to be canceled because it no longer meets the new market demands. What is your next step as a portfolio manager?

Options

  • AStart terminating the component and return back the remaining resources to the resource pool
  • BAnalyze the impact of this cancellation on the overall portfolio and recommend a decision to the
  • CMeet the sub-portfolio's team in order to assess the impact
  • DConsider it as a normal change, submit a change request for cancellation and wait for the

How the community answered

(52 responses)
  • A
    71% (37)
  • B
    10% (5)
  • C
    4% (2)
  • D
    15% (8)

Why each option

Once a governance decision to cancel a component has been made, the portfolio manager's responsibility is to execute that decision by initiating termination and releasing resources back to the pool.

AStart terminating the component and return back the remaining resources to the resource poolCorrect

When a formal governance decision to cancel a sub-portfolio has already been made, the portfolio manager's role shifts to executing that decision. This means initiating the component termination process and returning unused resources to the resource pool so they can be reallocated to other portfolio components or organizational needs.

BAnalyze the impact of this cancellation on the overall portfolio and recommend a decision to the

Analyzing impact and recommending a decision is appropriate before the decision is made, not after it has already been approved by the governance board.

CMeet the sub-portfolio's team in order to assess the impact

Meeting the team to assess impact is a step that should occur during decision-making, not after the cancellation has been decided.

DConsider it as a normal change, submit a change request for cancellation and wait for the

Submitting a change request and waiting is unnecessary when the governance board has already made the cancellation decision - that decision itself is the authorization to act.

Concept tested: Portfolio component termination and resource release

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

Topics

#Portfolio Termination#Resource Redeployment#Portfolio Lifecycle#Strategic Decision Implementation

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