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PFMP · Question #459

As a portfolio manager you try to use all the information available to you in order to get the best out of the existing information and to better plan and manage the portfolio. The Enterprise Environm

The correct answer is C. Organization's overall governance processes. Enterprise Environmental Factors at the portfolio level represent the organizational context within which the portfolio operates, with governance processes being their primary focus.

Governance

Question

As a portfolio manager you try to use all the information available to you in order to get the best out of the existing information and to better plan and manage the portfolio. The Enterprise Environmental Factors are important and referenced throughout the portfolio life cycle. Which of the following is correct regarding their purpose and focus?

Options

  • AForecasts how and when the portfolio will deliver value to the organization
  • BHigh-level prioritization mapping of the portfolio
  • COrganization's overall governance processes
  • DEstablish communication requirements

How the community answered

(25 responses)
  • A
    4% (1)
  • B
    4% (1)
  • C
    92% (23)

Why each option

Enterprise Environmental Factors at the portfolio level represent the organizational context within which the portfolio operates, with governance processes being their primary focus.

AForecasts how and when the portfolio will deliver value to the organization

Forecasting how and when the portfolio will deliver value is the function of the Portfolio Roadmap or Benefits Realization Plan, not of Enterprise Environmental Factors.

BHigh-level prioritization mapping of the portfolio

High-level prioritization mapping of the portfolio is the purpose of the Portfolio Strategic Plan or Portfolio Roadmap, not EEFs.

COrganization's overall governance processesCorrect

Enterprise Environmental Factors (EEFs) encompass the internal and external conditions that influence, constrain, or enable portfolio management decisions, and at the organizational level this primarily means the overall governance processes, policies, and structural frameworks. EEFs define the operating environment and boundaries within which the portfolio manager must work, making governance the central purpose and focus of EEFs throughout the portfolio life cycle.

DEstablish communication requirements

Establishing communication requirements is the purpose of the Portfolio Communication Management Plan, which is a subsidiary plan within the Portfolio Management Plan, not a function of EEFs.

Concept tested: Enterprise Environmental Factors purpose in portfolio management

Source: https://www.pmi.org/pmbok-guide-standards/foundational/portfolio-management

Topics

#Enterprise Environmental Factors#Portfolio Governance#Organizational Context#Portfolio Inputs

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