PFMP · Question #484
Your company changed its executives due to the lack of benefits realization and previous corruption issues. The new management has informed you that as of now, this will not change any process in…
The correct answer is B. Update the Strategic Plan. Risk tolerance is a strategic-level organizational parameter that is formally documented in the Portfolio Strategic Plan. Since management explicitly stated that only the risk tolerance is changing and no processes are affected, the appropriate action is to update the Strategic…
Question
Your company changed its executives due to the lack of benefits realization and previous corruption issues. The new management has informed you that as of now, this will not change any process in the portfolio and everything will remain the same. However, only the risk tolerance for the organization will be impacted, what will you do as a portfolio manager?
Options
- APerform stakeholders analysis once again and change the organization risk tolerance in the
- BUpdate the Strategic Plan
- CAssess the impact of the change along with the new management
- DRevise the roadmap to change the timeline due to the new risk profile
How the community answered
(27 responses)- A11% (3)
- B81% (22)
- C4% (1)
- D4% (1)
Explanation
Risk tolerance is a strategic-level organizational parameter that is formally documented in the Portfolio Strategic Plan. Since management explicitly stated that only the risk tolerance is changing and no processes are affected, the appropriate action is to update the Strategic Plan to reflect the new tolerance level - not to redo stakeholder analysis, assess impacts with management (which would be premature), or revise the roadmap (which addresses timelines, not risk posture). The Strategic Plan is the authoritative document that captures organizational risk thresholds and guides portfolio decisions, so it must be updated when risk tolerance changes.
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