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PFMP · Question #544

A portfolio manager needs to continuously balance the need and requirements with the available resources to maintain a balanced portfolio and portfolio resources in order to optimize delivery…

The correct answer is A. Risk Tolerance. At the organizational level, capability and capacity analysis includes risk tolerance as a key dimension that defines what the organization can and is willing to undertake.

Strategic Alignment

Question

A portfolio manager needs to continuously balance the need and requirements with the available resources to maintain a balanced portfolio and portfolio resources in order to optimize delivery. Capability and Capacity analysis is performed in 4 of the portfolio management processes and it serves a slightly different purpose in each and every one of them. When it relates to the organization level. This analysis comprises which of the following?

Options

  • ARisk Tolerance
  • BAssets
  • CFinancials
  • DHuman Resources

How the community answered

(24 responses)
  • A
    79% (19)
  • B
    4% (1)
  • C
    4% (1)
  • D
    13% (3)

Why each option

At the organizational level, capability and capacity analysis includes risk tolerance as a key dimension that defines what the organization can and is willing to undertake.

ARisk ToleranceCorrect

Risk tolerance is an organizational-level parameter assessed during capability and capacity analysis because it defines the boundaries within which the portfolio can operate. It reflects executive and stakeholder appetite for uncertainty and directly influences which components are feasible and how aggressively the portfolio can be structured.

BAssets

Assets are a component of capacity analysis but represent a more operational or project-level dimension, not the defining organizational-level parameter asked about.

CFinancials

Financials are an important capacity dimension but are considered a resource category rather than the organizational-level risk-based parameter that shapes the entire analysis framework.

DHuman Resources

Human Resources represent a capacity input but are a subset of resource analysis rather than the organizational-level characteristic that defines the scope of capability and capacity assessment.

Concept tested: Organizational-level capability and capacity analysis components

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

Topics

#Portfolio Balancing#Capability and Capacity Analysis#Organizational Risk Tolerance#Strategic Portfolio Management

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