PFMP · Question #748
Your organization has a defined portfolio management process that it has followed for three years. As the portfolio manager, you keep your various plans up to date, and because of numerous…
The correct answer is C. Weighted ranking and scoring techniques. Weighted ranking and scoring techniques are the appropriate analytical tool for assessing how various risks may impact the structure of the portfolio during risk management plan review.
Question
Your organization has a defined portfolio management process that it has followed for three years. As the portfolio manager, you keep your various plans up to date, and because of numerous regulatory changes involving the telecom industry, it is time to review and update the risk management plan. You have several key stakeholders working with you as you realize the importance of this plan in maintaining a competitive advantage. One way you and your team are assessing the various risks that may impact the structure of the portfolio is to use:
Options
- APortfolio component charts
- BPortfolio reports
- CWeighted ranking and scoring techniques
- DRisk metrics
How the community answered
(36 responses)- A3% (1)
- B11% (4)
- C83% (30)
- D3% (1)
Why each option
Weighted ranking and scoring techniques are the appropriate analytical tool for assessing how various risks may impact the structure of the portfolio during risk management plan review.
Portfolio component charts display structural relationships and status of components but do not provide a mechanism for evaluating or comparing risk impact.
Portfolio reports are communication outputs summarizing current state and are not analytical tools used to assess risks.
Weighted ranking and scoring techniques assign numerical weights to risk criteria and score each portfolio component or risk factor accordingly, enabling objective comparison of risks that could affect portfolio structure. This method is particularly useful when balancing multiple competing risk factors under regulatory pressure, as it surfaces the relative impact of each risk on the overall portfolio. The PMI Standard for Portfolio Management identifies weighted scoring as a key tool in portfolio risk management and optimization processes.
Risk metrics measure specific risk attributes but do not provide the comparative scoring mechanism needed to assess how risks affect portfolio structure.
Concept tested: Weighted ranking and scoring for portfolio risk assessment
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management
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