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PFMP · Question #542

Along the course of the portfolio, you will be recommending the initiation, termination and update of components. The governance bodies will be approving or rejecting your recommendations as part of…

The correct answer is B. Allocating resources to develop component proposals or execute portfolio components. The Authorize Portfolio process focuses on formally approving components and allocating resources to either develop component proposals or execute approved portfolio components.

Portfolio Governance Management

Question

Along the course of the portfolio, you will be recommending the initiation, termination and update of components. The governance bodies will be approving or rejecting your recommendations as part of their role in the authorization of the portfolio. As a portfolio manager, which of the following, in your opinion, is the objective/purpose of the Authorize Portfolio Process?

Options

  • AMake Governance Decisions
  • BAllocating resources to develop component proposals or execute portfolio components
  • CCreate an up-to-date list of qualified portfolio component
  • DBalance the portfolio for performance and value delivery

How the community answered

(20 responses)
  • A
    5% (1)
  • B
    95% (19)

Why each option

The Authorize Portfolio process focuses on formally approving components and allocating resources to either develop component proposals or execute approved portfolio components.

AMake Governance Decisions

Making governance decisions is a role of governance bodies throughout the entire portfolio lifecycle, not the specific objective of the Authorize Portfolio process.

BAllocating resources to develop component proposals or execute portfolio componentsCorrect

The primary purpose of the Authorize Portfolio process per the PMI Standard for Portfolio Management is to allocate resources - both to develop component proposals for new initiatives and to fund and resource components already approved for execution. This is the core decision and output of the authorization stage.

CCreate an up-to-date list of qualified portfolio component

Creating and maintaining a qualified list of portfolio components is an output of the Define Portfolio process, not the Authorize Portfolio process.

DBalance the portfolio for performance and value delivery

Balancing the portfolio for performance and value delivery is the objective of the Optimize Portfolio process, not the Authorize Portfolio process.

Concept tested: Authorize Portfolio process objective and purpose

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

Topics

#Portfolio Authorization#Portfolio Governance#Resource Allocation#Portfolio Process Groups

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