A portfolio manager needs to continuously balance the need and requirements with the available resources and needs to maintain a balanced portfolio and portfolio resources in order to optimize…

Question

Options

• APerformed to understand the human, financial, and asset capacity and capability of the
• BIt enables the organization to achieve maximum portfolio benefits given current resource
• CTo study the capability of resources, match them against the portfolio's objectives and goals, and
• DTo understand how much work is able to be performed based on the resources available

• A
  4% (1)
• C
  4% (1)
• D
  93% (25)

Explanation

Capability and Capacity analysis serves a different purpose at each stage of portfolio management. When used during Charter development, its purpose is to understand how much work can be performed based on the resources available-essentially establishing the portfolio's capacity baseline. This analysis helps the organization determine what is feasible to authorize before formally chartering the portfolio. Option A describes a broader organizational assessment. Option B describes the purpose in the context of balancing and optimizing an existing portfolio. Option C describes the purpose during strategic alignment or component selection. During charter development specifically, the focus is on answering 'What can we realistically take on?' given current resource capacity-which is Option D.

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