As you are the portfolio manager for your state government agency, which is undergoing a series of budget cuts, you are focusing attention on managing risks to the portfolio as the budget is…

The correct answer is C. Portfolio management plan. The portfolio management plan is the governing document that defines how the portfolio will be managed, including the resources, time, and budget allocated to all portfolio management activities such as risk management. When budget cuts reduce the overall portfolio budget, the…

Question

As you are the portfolio manager for your state government agency, which is undergoing a series of budget cuts, you are focusing attention on managing risks to the portfolio as the budget is reduced. You realize in this process the time and budget for risk management also will be reduced; these data are in the:

Options

APortfolio performance plan
BPortfolio strategic plan
CPortfolio management plan
DPortfolio financial plan

How the community answered

(45 responses)

A
4% (2)
B
13% (6)
C
78% (35)
D
4% (2)

Explanation

The portfolio management plan is the governing document that defines how the portfolio will be managed, including the resources, time, and budget allocated to all portfolio management activities such as risk management. When budget cuts reduce the overall portfolio budget, the revised time and funding available for risk management are reflected in the portfolio management plan. Option A (portfolio performance plan) tracks how performance will be measured, not resource allocations. Option B (portfolio strategic plan) sets strategic direction and objectives, not operational resource budgets. Option D (portfolio financial plan) addresses overall financial investment and benefits but does not specifically define management process budgets.

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