PFMP · Question #500
A junior Portfolio manager has come to you for advice. He is hearing a lot about the definition of portfolio management, however, he is not sure anymore of the exact one. What do you, as an…
The correct answer is C. A portfolio is a component collection of programs, projects, or operations managed as a group to. The PMI Standard defines a portfolio as a collection of programs, projects, or operations managed as a group to achieve strategic business objectives, regardless of whether the components are interdependent.
Question
A junior Portfolio manager has come to you for advice. He is hearing a lot about the definition of portfolio management, however, he is not sure anymore of the exact one. What do you, as an experienced portfolio manager tell him?
Options
- AIn a portfolio, the Portfolio manager follows the portfolio management processes linearly and does
- BGenerally, you have a single portfolio in an organization, and all other portfolios are sub-portfolios
- CA portfolio is a component collection of programs, projects, or operations managed as a group to
- DA portfolio has clear start and end dates in order for the organization to be able to know when to
How the community answered
(35 responses)- A3% (1)
- B6% (2)
- C89% (31)
- D3% (1)
Why each option
The PMI Standard defines a portfolio as a collection of programs, projects, or operations managed as a group to achieve strategic business objectives, regardless of whether the components are interdependent.
Portfolio management processes are not linear; they are iterative, ongoing, and revisited throughout the portfolio lifecycle as strategy evolves and component performance changes.
Organizations can and often do maintain multiple portfolios aligned to different business units, regions, or strategic themes - there is no PMI requirement for a single organizational portfolio.
This answer reflects the official PMI definition of a portfolio - it is a component collection of programs, projects, or operations grouped together to facilitate effective management in support of strategic objectives. Components need not be interdependent or directly related; what links them is their contribution to shared organizational strategy and the efficiency gained by managing them as a group.
Unlike projects, portfolios do not have fixed start and end dates; they are continuous organizational constructs that evolve as strategy changes, with components added, changed, or closed over time.
Concept tested: PMI Standard definition of a portfolio
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management
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