PFMP · Question #450
Risk Management is integrated in all the other processes and process groups and is an integral recurrent activity throughout the portfolio life cycle. Which of the following is considered an…
The correct answer is A. Technological Advancement. Technological Advancement (Option A) is an external risk because it originates outside the organization and cannot be directly controlled by portfolio leadership. External risks arise from the environment in which the portfolio operates. In contrast, Corporate Strategies…
Question
Risk Management is integrated in all the other processes and process groups and is an integral recurrent activity throughout the portfolio life cycle. Which of the following is considered an external risk that can affect the portfolio?
Options
- ATechnological Advancement
- BCorporate Strategies
- CBankruptcy
- DChanging Priorities
How the community answered
(33 responses)- A94% (31)
- C3% (1)
- D3% (1)
Explanation
Technological Advancement (Option A) is an external risk because it originates outside the organization and cannot be directly controlled by portfolio leadership. External risks arise from the environment in which the portfolio operates. In contrast, Corporate Strategies (Option B) are defined internally by the organization's leadership. Changing Priorities (Option D) typically reflect internal strategic or governance decisions. Bankruptcy (Option C), while sometimes triggered by external factors, is ultimately an internal organizational condition. Technological advancement - such as a competitor releasing a disruptive technology or a paradigm shift in the industry - is a classic external risk that portfolio managers must monitor and respond to through their risk management processes.
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