PFMP · Question #635
Assume you are a member of your company's Portfolio Review Board. Your Board meets quarterly to determine which new components to undertake and selects them even if it means the portfolio then will…
The correct answer is B. Total available resources. When a Portfolio Review Board selects new components that may require portfolio rebalancing, total available resources is the key constraint factor. A business case may identify compelling benefits (A), feasibility studies (D) may confirm viability, and stakeholder interest (C)…
Question
Assume you are a member of your company's Portfolio Review Board. Your Board meets quarterly to determine which new components to undertake and selects them even if it means the portfolio then will require rebalancing. As you consider the proposed business case for a component and assess the suggestions of the other Board members, a key factor is:
Options
- AThe depth of the proposal in terms of identification of key benefits
- BTotal available resources
- COverall stakeholder interest
- DComponent feasibility studies
How the community answered
(41 responses)- A7% (3)
- B76% (31)
- C2% (1)
- D15% (6)
Explanation
When a Portfolio Review Board selects new components that may require portfolio rebalancing, total available resources is the key constraint factor. A business case may identify compelling benefits (A), feasibility studies (D) may confirm viability, and stakeholder interest (C) may be high-but none of those matter if the organization lacks the capacity (people, budget, equipment) to execute the component. Portfolio rebalancing is fundamentally a resource allocation exercise; you cannot authorize a new component without understanding whether resources exist to support it alongside the existing portfolio. Resource capacity is the binding constraint in portfolio selection.
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