PFMP · Question #623
Assume you are managing the corporate portfolio for your company noted for many products primarily focused on farm equipment. Recently it has diversified into other markets especially with the economi
The correct answer is D. Risk management. The scenario describes a high-priority program facing threats: required technology is unavailable externally and internal staff lacks the necessary competencies. These are classic risk factors-identified uncertainties with potential negative impacts on the program's success. The
Question
Assume you are managing the corporate portfolio for your company noted for many products primarily focused on farm equipment. Recently it has diversified into other markets especially with the economic downturn in the country. While many of the traditional products are in the portfolio as new features are added to enhance customer satisfaction, one of the new product lines is a high- profile program that is ranked number five in the corporate portfolio. As the portfolio manager, you know this program has several interdependencies with other projects and programs, and recently this high-ranked program has experienced difficulties as needed technology is not available externally, and internal staff lacks the needed competencies to develop it. Its termination will be discussed at Friday's Portfolio Board meeting. You plan to discuss these interdependencies as part of your responsibilities in:
Options
- AResource allocation
- BPortfolio balancing
- CFinancial management
- DRisk management
How the community answered
(40 responses)- A8% (3)
- B18% (7)
- C3% (1)
- D73% (29)
Explanation
The scenario describes a high-priority program facing threats: required technology is unavailable externally and internal staff lacks the necessary competencies. These are classic risk factors-identified uncertainties with potential negative impacts on the program's success. The discussion about possible termination is a risk response (avoidance/termination) being considered by the Portfolio Review Board. This situation falls squarely under risk management, which involves identifying, analyzing, and responding to risks that affect portfolio components. Option A (resource allocation) partially applies since staff competency is a concern, but the root issue is the risk these gaps pose to the program. Option B (portfolio balancing) involves adjusting the mix of components, and while termination would affect balance, it's not the primary category. Option C (financial management) is not the central concern here.
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