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PFMP · Question #513

You are in the toughest phase of the portfolio life cycle due to the governmental issues in your country. Yesterday night, one of the key team members quit and left the country. You have included…

The correct answer is B. Portfolio Sponsor. When an urgent portfolio decision is needed outside a scheduled governance board meeting, the Portfolio Sponsor holds authority to grant immediate approval for component initiation.

Portfolio Governance

Question

You are in the toughest phase of the portfolio life cycle due to the governmental issues in your country. Yesterday night, one of the key team members quit and left the country. You have included this in the portfolio risk register while planning the portfolio because you knew that this could happen and that this key resource has family in Canada and can leave if the situation gets bad. Following this, you activated the response plan, which is to initiate a new component that will cater for reaching the deliverable in another way. However, an immediate approval is needed for initiation of this component or the end-of-month major deliverable will be delayed. To whom you should present the proposal for urgent approval?

Options

  • APortfolio Governance Board
  • BPortfolio Sponsor
  • CYou can take such decisions
  • DExecutive Management

How the community answered

(32 responses)
  • A
    9% (3)
  • B
    72% (23)
  • C
    3% (1)
  • D
    16% (5)

Why each option

When an urgent portfolio decision is needed outside a scheduled governance board meeting, the Portfolio Sponsor holds authority to grant immediate approval for component initiation.

APortfolio Governance Board

The Portfolio Governance Board operates on a formal, scheduled basis and is not structured for immediate ad-hoc approvals in urgent situations.

BPortfolio SponsorCorrect

The Portfolio Sponsor serves as the executive authority who can make time-sensitive decisions and approve new components when urgent situations arise outside the normal governance cycle. Unlike the Governance Board, which operates on a formal schedule, the Sponsor can act promptly to prevent schedule slippage and is directly accountable for strategic portfolio-level decisions.

CYou can take such decisions

A portfolio manager does not have unilateral authority to initiate new components; such decisions require approval from an executive-level authority.

DExecutive Management

Executive Management as a collective body is less accessible for urgent approvals than the designated Portfolio Sponsor who is the primary executive escalation point for the portfolio.

Concept tested: Portfolio Sponsor authority for urgent component approval

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

Topics

#Portfolio Governance#Portfolio Roles & Responsibilities#Portfolio Risk Response#Urgent Decision Making

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