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PFMP · Question #424

Your company works closely with the government on the implementation of water pumps for rural areas. You are constantly dealing with new and updated regulations, and periodically adapting the portfoli

The correct answer is A. Normally categorize, score and rank the components, however, include them in the final portfolio. Regulatory components are mandatory-they must be included in the portfolio regardless of their strategic alignment scores because non-compliance carries legal or regulatory risk. However, they still go through the standard categorization, scoring, and ranking process like all oth

Portfolio Governance

Question

Your company works closely with the government on the implementation of water pumps for rural areas. You are constantly dealing with new and updated regulations, and periodically adapting the portfolio to the changes. When it comes to regulatory components, how do you include the components in the portfolio?

Options

  • ANormally categorize, score and rank the components, however, include them in the final portfolio
  • BNormally categorize, score and rank the components and include them similar to any other
  • CReject them if they are not strategically aligned with the portfolio objectives
  • DInclude them directly in the portfolio without categorization, ranking and scoring

How the community answered

(34 responses)
  • A
    85% (29)
  • B
    3% (1)
  • C
    3% (1)
  • D
    9% (3)

Explanation

Regulatory components are mandatory-they must be included in the portfolio regardless of their strategic alignment scores because non-compliance carries legal or regulatory risk. However, they still go through the standard categorization, scoring, and ranking process like all other components. The correct approach (Option A) is to normally categorize, score, and rank the regulatory components using the standard prioritization model, but then include them in the final portfolio regardless of their ranking outcome because compliance is non-negotiable. They cannot simply be rejected for poor strategic alignment (Option C), and skipping the categorization process entirely (Option D) would bypass the governance framework. This approach maintains process integrity while acknowledging the mandatory nature of compliance work.

Topics

#Portfolio component inclusion#Regulatory compliance#Portfolio governance#Component analysis

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