Your Portfolio Review Board is scheduled to meet in a week. Resources only are available to support one project, and detailed business cases have been prepared for two of them. Your company has a…

Question

Options

• AProject A and it has less risk associated with it
• BProject B and it has less risk associated with it
• CProject A as the benefits will be realized in a shorter time period
• DProject B but other qualitative items are not available

• A
  5% (2)
• B
  11% (4)
• C
  3% (1)
• D
  82% (31)

Explanation

The correct answer is D: Project B, but other qualitative items are not available. In portfolio management, a complete recommendation to a Review Board requires both quantitative metrics (NPV, ROI, payback period, etc.) and qualitative factors (strategic alignment, stakeholder impact, market conditions, etc.). While the table may show Project B as favorable based on quantitative data and risk profile, the portfolio manager has a professional obligation to inform the Board that qualitative data is absent. A risk-adverse company needs a full picture before committing resources. Simply pointing to numbers without flagging missing information would be an incomplete-and potentially misleading-recommendation. Answers A and B are incomplete because they only address risk without acknowledging missing qualitative data. Answer C is incorrect because a risk-adverse company should not prioritize speed of benefit realization over risk exposure.

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