As a portfolio manager, you have been reporting the progress, status and performance regularly and you have been doing a good job so far. Reports are the primary documents to communicate portfolio…

Question

Options

• ATo be able to analyze occurred risks and cancel any component who has an increased risk
• BTo be able to define the organization risk tolerance and update the Strategic Plan accordingly
• CTo know about major risks and occurred issues in relation with the portfolio components
• DTo assess achieved value and the confidence level in it

• A
  9% (2)
• B
  4% (1)
• C
  83% (19)
• D
  4% (1)

Explanation

Risk reports in portfolio management serve as communication tools that inform decision-makers about the major risks and issues that have materialized or are threatening portfolio components. This information is essential during optimization because it allows the portfolio manager to rebalance the component mix-cancelling, deferring, or accelerating components-based on actual risk exposure. Option A is too extreme (cancelling any component with increased risk is not a standard practice); Option B confuses risk reports with strategic planning documents; Option D describes value achievement reports or benefits realization reports, not risk reports.

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