PFMP · Question #664
Your health insurance company has set up its portfolio into five different categories: research and development, IT, Medicare, government health insurance, and non-government health insurance…
The correct answer is A. Ensure such allocations are reflected in the portfolio's strategic plan. As the enterprise-level portfolio manager, the primary responsibility is to ensure that budget allocations across portfolio categories are reflected in the portfolio strategic plan to maintain alignment.
Question
Your health insurance company has set up its portfolio into five different categories: research and development, IT, Medicare, government health insurance, and non-government health insurance. Funding is allocated yearly to each of these six categories. As the portfolio manager at the enterprise level, you:
Options
- AEnsure such allocations are reflected in the portfolio's strategic plan
- BMeet with the CFO and determine these allocations when the budget for the fiscal year is being
- CMeet with the managers of the five portfolios once the budget allocations are known
- DUse your existing inventory of components in the portfolio and in the pipeline to determine funding
How the community answered
(44 responses)- A80% (35)
- B7% (3)
- C2% (1)
- D11% (5)
Why each option
As the enterprise-level portfolio manager, the primary responsibility is to ensure that budget allocations across portfolio categories are reflected in the portfolio strategic plan to maintain alignment.
The portfolio strategic plan is the overarching governance document that aligns financial investment decisions with organizational strategy; ensuring that approved budget allocations are captured there maintains traceability between funding decisions and the strategic objectives each portfolio category is intended to advance.
While the CFO is involved in budget determination, deciding allocations jointly with the CFO is a financial planning activity - the enterprise portfolio manager's distinct role is to ensure strategic alignment of those allocations, not to set them.
Meeting with individual category portfolio managers is a coordination and communication task that occurs after strategic alignment is established, not the primary enterprise-level accountability.
Using the component inventory to determine funding needs is a bottom-up demand analysis task that informs budgeting, but it is not the enterprise portfolio manager's primary responsibility once allocations are finalized.
Concept tested: Enterprise portfolio manager role in strategic financial alignment
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management
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