PFMP · Question #481
You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to…
The correct answer is B. Fallback Plan. In PMI's Portfolio Risk Management, recognized risk strategies include: Scenario Analysis (examining possible future events and their impacts), Strategies for both threats and opportunities (avoid, transfer, mitigate, accept for threats; exploit, share, enhance, accept for…
Question
You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to success and you are coaching your team on the same. When it comes to Managing portfolio risks, a risk owner, along with the portfolio manager, should select the strategy or mix of strategies most likely to be effective. Which of the following is not a risk strategy?
Options
- AScenario Analysis
- BFallback Plan
- CStrategies for both threats and opportunities
- DResponse Strategy Selection
How the community answered
(21 responses)- A10% (2)
- B81% (17)
- C5% (1)
- D5% (1)
Explanation
In PMI's Portfolio Risk Management, recognized risk strategies include: Scenario Analysis (examining possible future events and their impacts), Strategies for both threats and opportunities (avoid, transfer, mitigate, accept for threats; exploit, share, enhance, accept for opportunities), and Response Strategy Selection (choosing appropriate responses). A Fallback Plan is not a standalone risk strategy - it is a contingency measure activated when a primary response plan fails. It is a component within a risk response, not a strategy category itself. Therefore, it does not belong in the list of portfolio risk strategies.
Topics
Community Discussion
No community discussion yet for this question.