ValidVCE PfMP Real Exam Question Answers Updated [May 27, 2024]
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NEW QUESTION # 239
Based on the following table, assume you have been asked to perform a prioritization analysis based on these data. You realize risk is a major concern to the company, but you have some data available about potential benefits. These data show A and D have the greatest benefits. A and D are followed in terms of benefits by C, then B, then F, and finally E. Assume three of the programs and projects can be added to the portfolio when the Board meets. Your recommendation is to select:
- A. A, F, and C
- B. A, D, and C
- C. D, B, and C
- D. A, B, and C
Answer: B
NEW QUESTION # 240
One of the key stakeholders came to you asking you to add more metrics because she thinks that it would give the portfolio management a better view of the actual progress. For her the more metrics you have the better.
What should your opinion be regarding this?
- A. You should agree as having more metrics is better and because you do not want to say no to a key stakeholder
- B. You should disagree and escalate this to the governance board
- C. You should disagree and communicate a clear message to the stakeholder that it does not matter how many metrics you have as long as you can fully report the progress
- D. You should agree, as having more metrics is better
Answer: C
Explanation:
Explanation
It does not matter how many metrics you have as long as you have it all covered. The scenario here does not require escalation.
The portfolio management office should be prepared to develop new metrics when appropriate and delete or change metrics that are no longer relevant to the stakeholders or that no longer support the organizational strategy and objectives. The quantity of metrics should not overwhelm the stakeholders to ensure the metrics are actively tracked and understood.
NEW QUESTION # 241
Portfolios have a lot of components in them and are executed along an extended lifecycle. For this, as a portfolio manager, you continuously monitor and control the progress and status. What input can you use to help you with this?
- A. Roadmap, Portfolio Management Plan, Portfolio, Portfolio Reports, Portfolio Organizational Process Assets
- B. Roadmap, Portfolio Management Plan, Portfolio, Portfolio Reports, Enterprise Environmental Factors
- C. Roadmap, Portfolio Strategic Plan, Portfolio, Portfolio Reports, Portfolio Process Assets
- D. Roadmap, Portfolio Management Plan, Portfolio, Portfolio Reports, Portfolio Process Assets
Answer: D
NEW QUESTION # 242
You are managing a large portfolio and know that you will need to constantly show the progress and status of the portfolio in meeting. For this you have developed a robust roadmap using BI tools. The portfolio roadmap is an important document used throughout the portfolio life cycle; when it comes to developing the portfolio communication management plan, which of the following options is correct
- A. The portfolio roadmap helps with the understanding of the structure of the portfolio and interdependencies among the portfolio components
- B. The portfolio roadmap provides the high-level strategic approach in a chronological fashion for portfolio management execution
- C. The portfolio roadmap provides a high-level timeline for expected portfolio component delivery
- D. The portfolio roadmap is necessary for this process because it summarizes strategic objectives, evolving aspects of the strategy by organizational areas, portfolio milestones, dependencies, challenges, and risks
Answer: A
Explanation:
Explanation
When it comes to Developing the Portfolio Communication Management Plan, the portfolio roadmap helps with the understanding of the structure of the portfolio and interdependencies among the portfolio components.
The portfolio roadmap provides the high-level strategic approach in a chronological fashion for portfolio management execution is a trait of the roadmap as an input to Manage Strategic Change process. The portfolio roadmap is necessary for this process because it summarizes strategic objectives, evolving aspects of the strategy by organizational areas, portfolio milestones, dependencies, challenges, and risks is a trait of the roadmap as an input to the Define Portfolio process. The portfolio roadmap provides a high-level timeline for expected portfolio component delivery is a trait of the roadmap as an input to the Manage Portfolio Value process
NEW QUESTION # 243
Risks perspectives differ within the organization between executive management, operations management, portfolio management and project/program management. When it comes to Operations management, which of the following is a risk concern?
- A. Issues with Product development
- B. Time to market
- C. Time, cost and scope commitments
- D. Reporting and data accuracy
Answer: A
Explanation:
Explanation
Risk concerns for operations management risk concerns generally involve issues with product and project development, organization products, services, and processes needed to support change
NEW QUESTION # 244
At which level should the portfolio manager conduct interviews for strategic analysis of the portfolio?
- A. Tactical
- B. Functional
- C. Operational
- D. Organizational
Answer: D
NEW QUESTION # 245
Risk Management is integrated in all the other processes and process groups and is an integral recurrent activity throughout the portfolio life cycle. Which of the following is considered an external risk that can affect the portfolio?
- A. Corporate Strategies
- B. Changing Priorities
- C. Bankruptcy
- D. Technological Advancement
Answer: D
NEW QUESTION # 246
The members of your Portfolio Review Board and other key stakeholders tend to be risk adverse as the company has survived recent recessions and is profitable. However, in an upcoming meeting with the corporate Board of Directors, they have asked you to show the frequency of meeting certain cost objectives at various percent points. For example assume the portfolio is to meet a $41,000 target in the next month, to be
75% confident this will occur, a forecast of $50,000 is needed. This means you need to show:
- A. The needed contingency reserve
- B. The confidence of meeting success criteria
- C. The probability of achieving portfolio objectives
- D. The values of KPIs with their confidence levels
Answer: C
NEW QUESTION # 247
You have scored the portfolio components and are analyzing the data in order to prioritize the components.
Using the following scoring table, which of the options represents the correct Components Priority? Taking into consideration that the costs for each component is Component A: 10 K USD, Component B: 15 K USD, Component C: 16 K USD, Component D: 13 K USD and Component E: 11 K USD; The budget for this portfolio is a fixed one of 40 k USD Larger image
- A. D, B, C, E
- B. D, B, E, A
- C. A, C, E, B
- D. D, B, E
Answer: D
NEW QUESTION # 248
You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to success and you are coaching your team on the same. For this you maintain a risk register. The risk register is used throughout the portfolio life cycle in order to track and manage risks. It is continually updated throughout the portfolio life cycle. As a portfolio manager, you know that the risk register includes all of the following except
- A. Probability Impact Assessment
- B. List of potential responses
- C. Updated risk categories
- D. Person who Identified the risk
Answer: D
NEW QUESTION # 249
Your company acquired another company. The sponsor asked you to check the other company's current inventory of work and see what could be added to your current portfolio. You have a meeting coming up to show the sponsor the portfolio dependencies. Which document should you be showing him?
- A. Portfolio Strategic Plans of both, your portfolio and the ones of the other company
- B. Portfolio Management Plan
- C. Portfolio Roadmap
- D. Portfolio Charter
Answer: C
NEW QUESTION # 250
You are the portfolio manager in a large organization including a diversity of stakeholders. From the start, you knew the importance of correctly managing the stakeholders requirements and concerns and you grouped them in order to
- A. Group stakeholders from the same functional area
- B. Group stakeholders having same concerns and interests
- C. Facilitate stakeholders identification
- D. Group stakeholders as internal and external
Answer: C
NEW QUESTION # 251
The portfolio strategic plan should contain a prioritization model or approach that guides the ongoing decisions as to which portfolio components should be added, terminated, or changed, as well as prioritizes and balances the component mix over time. A simple prioritization model may be provided which contains
- A. All of the options
- B. Criteria to ensure alignment to strategic goals
- C. Investment risks
- D. ROI
Answer: A
NEW QUESTION # 252
You are the manager for a governmental portfolio aiming to restructure the roads in your country. Having a tight schedule, a large number of stakeholders including the public, in addition to a strict budgeting framework, you know that you will be managing the performance closely and that the governance board and the stakeholders would want to check on the progress and performance frequently. For this you have developed a robust performance management plan. What is expected to be found in this plan?
- A. Identified stakeholder expectations
- B. Portfolio Vision and measurable goals and guidance
- C. Resource optimization and Benefits Realization
- D. Resources required by type and quantity
Answer: C
Explanation:
Explanation
Identified stakeholder expectations are part of Portfolio Communication management Plan; Portfolio Vision, measurable goals and guidance, and Resources required by type and quantity are part of the Portfolio Strategic Plan. The Portfolio Performance Management Plan includes: Introduction (goals, objectives, strategies, and tactics); Performance roles and responsibilities (who will measure and how often); Performance measures, that is, what will be measured, which can include metrics on scope, cost, schedule, resources, and benefits); Performance reporting (what tools will be used; dissemination of reports, scorecards, and dashboards; and who will be responsible and when); Resource optimization (utilization, balancing, and smoothing resource demand against capacity); and Benefits realization (how will realized benefits be tracked and compared to plans; how will value be calculated)
NEW QUESTION # 253
Your company is currently on the verge of bankruptcy due to the lack of transparency within the organization; this alerted the CEO to take decisive actions and request that new reporting lines be established in order to be fully transparent. Following this, the portfolio structure has changed to cope with the new reporting lines.
Where is this change reflected when it comes to portfolio documents?
- A. Portfolio Strategic Plan updates
- B. Portfolio Charter updates
- C. Portfolio Roadmap updates
- D. Portfolio Management Plan updates
Answer: B
Explanation:
Explanation
The portfolio structure is mentioned twice in the standard for portfolio management; once in the charter and another time in the portfolio (SPM V3 Page 39 - Table 3-2). In our case, you are managing a strategic change to salvage your company and prevent bankruptcy. As outputs to this process, you update the charter to reflect the new strategic objectives.
Generally the structure is part of the charter and referenced in the charter such as in our scenario. From an exam perspective, the charter is the main document containing the structure.
NEW QUESTION # 254
The interest, influence, and communication needs of business operational stakeholders who are looking to ensure alignment between portfolio components, while minimizing negative impact and maximizing positive benefits of all portfolio-managed changes to their business operations, relate to which type of stakeholders?
- A. Does not relate to stakeholders
- B. Internal Stakeholders
- C. External Stakeholders
- D. Internal and External Stakeholders
Answer: B
NEW QUESTION # 255
You are working for a fortune 500 company which has a long history. Having many legacy IT systems, the CTO has envisioned the migration of IT systems from on-premise servers to cloud environments. What should you do after hearing the new direction?
- A. Understand key stakeholders and their expectation
- B. Update the portfolio management plan
- C. Record the decision made in portfolio reports
- D. Develop a portfolio strategic plan
Answer: A
NEW QUESTION # 256
When it comes to change, one of your junior portfolio managers came to you requesting your help to deal with the overwhelming strategic changes. He wants your assistance in solving the issue of continuous changes in the organization's objectives. What should be your advice to him?
- A. Change is a normal thing when it comes to portfolios, and he should act upon each strategic change in a quick manner in order to re-align his portfolio
- B. Help him to align his portfolio and manage it correctly in order to decrease the number and scale of changes
- C. Inform him that this is abnormal and that he should re-do the planning for his portfolio; even if it takes time and resources, but it will help him a lot for the rest of the portfolio life cycle
- D. Not all strategic changes impacting his portfolio need to be taken care of; he should prioritize the change and only accept the ones with high priorities
Answer: A
Explanation:
Explanation
Change is a normal thing when it comes to portfolios, and he should act upon each strategic change in a quick manner in order to re-align his portfolio. All strategic changes have to be taken in consideration and should not be prioritized. Other options are not correct
NEW QUESTION # 257
Your sponsor has urged you to analyze Portfolio Risk before the end-of-week governance board meeting as the CEO will be present and is interested in Portfolio risk data in particular. Currently, you do not have adequate risk information in order to analyze data and give recommendations. Which tool is the most suitable for you to use in this case?
- A. Delphi
- B. Weighted Ranking and Scoring Techniques
- C. Graphical Analytical methods
- D. Cumulative distribution
Answer: A
NEW QUESTION # 258
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