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PFMP · Question #384

Risk is inherent in all activities and managing risk is critical to a successful portfolio. Risks perspectives differ within the organization between executive management, operations management, portf

The correct answer is C. Reporting and data accuracy. Each organizational level has its own risk lens. Executive management concerns itself with strategic and market-level risks. Project/Program management is concerned with time, cost, and scope commitments (option B) and product development issues (option A). Operations management

Governance and Performance Management

Question

Risk is inherent in all activities and managing risk is critical to a successful portfolio. Risks perspectives differ within the organization between executive management, operations management, portfolio management and project/program management. When it comes to Portfolio management, which of the following is a risk concern?

Options

  • AIssues with Product development
  • BTime, cost and scope commitments
  • CReporting and data accuracy
  • DTime to market

How the community answered

(46 responses)
  • A
    4% (2)
  • B
    2% (1)
  • C
    93% (43)

Explanation

Each organizational level has its own risk lens. Executive management concerns itself with strategic and market-level risks. Project/Program management is concerned with time, cost, and scope commitments (option B) and product development issues (option A). Operations management deals with time-to-market concerns (option D). Portfolio management sits above individual components and is responsible for the integrity of information flowing up and across the portfolio - meaning reporting accuracy and data quality are core portfolio-level risk concerns. If the data used to make portfolio decisions is inaccurate, the entire portfolio governance and optimization process is compromised. This is why reporting and data accuracy is the risk concern assigned to the portfolio management level.

Topics

#Portfolio Risk Management#Portfolio Governance#Data Accuracy#Information Management

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