You are the portfolio manager for a family business company who had an old CEO reluctant to change and to taking risks. The board has decided with the support of the president to change the CEO and…

Question

Options

• APortfolio Performance Plan
• BPortfolio Charter
• CPortfolio Management Plan
• DStrategic Plan

• A
  13% (3)
• B
  4% (1)
• C
  9% (2)
• D
  74% (17)

Explanation

The CEO change and the explicit directive to 'be more aggressive' signals a fundamental shift in the organization's risk appetite and strategic direction. The Strategic Plan is the top-level document that captures organizational vision, mission, goals, and the risk posture of the enterprise. When leadership changes in a way that alters strategic direction and risk tolerance, the Strategic Plan must be updated first to reflect the new direction before any portfolio-level documents are revised. The Portfolio Management Plan (C) and Portfolio Charter (B) are derived from and aligned to the Strategic Plan - they would be updated subsequently, not first. The Portfolio Performance Plan (A) focuses on performance measurement baselines, not strategic direction. The root cause here is a strategy shift, so the Strategic Plan is the correct answer.

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