Latest PDF of PfMP: Portfolio Management Professional (PfMP)

Portfolio Management Professional (PfMP) Practice Test

PfMP exam Format | Course Contents | Course Outline | exam Syllabus | exam Objectives

Title: Portfolio Management Professional (PfMP)

Test Detail:
The PfMP (Portfolio Management Professional) certification is offered by the Project Management Institute (PMI) and is designed for professionals who specialize in portfolio management. It validates the knowledge and skills required to manage and align an organization's portfolio of projects and programs with strategic objectives. The PfMP certification demonstrates expertise in portfolio governance, strategic planning, and stakeholder management.

Course Outline:
The PfMP certification program covers a comprehensive range of subjects related to portfolio management. The course provides participants with a thorough understanding of portfolio management principles, processes, and best practices. The following is a general outline of the key areas covered in the PfMP certification program:

1. Portfolio Management Overview:
- Portfolio management definition and concepts
- Role of portfolio managers
- Portfolio governance and decision-making
- Portfolio management processes and frameworks
- Organizational and environmental considerations

2. Strategic Alignment:
- Strategic planning and alignment
- Linking portfolio management to organizational strategy
- Benefits realization and value delivery
- Portfolio risk management
- Portfolio performance measurement and reporting

3. Portfolio Governance:
- Portfolio governance framework and structures
- Portfolio oversight and steering committees
- Portfolio prioritization and selection
- Resource management and capacity planning
- Stakeholder engagement and communication

4. Portfolio Risk and Change Management:
- Risk management in portfolio management
- Change management in portfolio management
- Portfolio optimization and scenario analysis
- Managing portfolio dependencies and interdependencies
- Portfolio balancing and trade-off analysis

5. Portfolio Performance and Reporting:
- Key performance indicators (KPIs) in portfolio management
- Portfolio dashboards and reporting
- Portfolio reviews and audits
- Portfolio maturity and continuous improvement
- Benefits realization and lessons learned

Exam Objectives:
The PfMP certification exam assesses candidates' understanding of portfolio management principles, processes, and practices. The exam objectives include, but are not limited to:

1. Demonstrating knowledge of portfolio management concepts and frameworks.
2. Aligning portfolio management with strategic objectives and organizational priorities.
3. Implementing portfolio governance structures and decision-making processes.
4. Managing portfolio risks, change, and resource allocation.
5. Monitoring and measuring portfolio performance and benefits realization.
6. Engaging stakeholders and communicating effectively in portfolio management.

Syllabus:
The PfMP certification program typically spans a multi-day training course or self-paced online learning modules. The syllabus provides a breakdown of the subjects covered throughout the course, including specific learning objectives and milestones. The syllabus may include the following components:

- Introduction to Portfolio Management
- Portfolio Management Processes and Frameworks
- Strategic Alignment and Value Delivery
- Portfolio Governance and Decision-Making
- Risk and Change Management in Portfolio Management
- Portfolio Performance Measurement and Reporting
- Stakeholder Engagement and Communication
- exam Preparation and Mock Tests
- Final PfMP Certification Exam

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Portfolio Management Professional (PfMP)
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Question: 90
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 . Internal and External Stakeholders
B . External Stakeholders
C . Does not relate to stakeholders
D . Internal Stakeholders
Answer: D
Question: 91
While Optimizing your portfolio, you need to present to the governance board how your components will be ranked
and balanced in a quantifiable way .
How will you do this?
A . Graphical analytical methods
B . Value measurement and scoring
C . Scenario Analysis
D . Weighted ranking and scoring
Answer: D
Question: 92
Managing Strategic Change is an integral part of any portfolio in order to remain aligned with the strategic objectives.
Your portfolio has undergone a major strategic change and you are currently determining the volume of work required
to do in order to re-align the portfolio .
What are you currently using?
A . Change Analysis
B . Gap Analysis
C . Readiness Assessment
D . Stakeholder Analysis
Answer: B
Question: 93
One of your component managers has submitted his resignation and left the company; a new program manager joins
the portfolio replacing him .
Which document you use to inform the new program manager about his responsibilities in the portfolio?
A . Program Business Case
B . Portfolio Roadmap
C . Portfolio Management Plan
D . Portfolio Charter
Answer: C
Question: 94
Because of the ongoing and iterative nature of portfolio management, the processes in it are continually repeated as
new components are added, and others are completed or terminated. Revisions are constant given complexity, risks,
and the rate of change.
As you work to optimize the portfolio, it is helpful to:
A . Assign components to predefined categories
B . Prepare a flowchart
C . Organize ideas from stakeholders into logical groupings
D . Perform a structure analysis of roles and responsibilities
Answer: B
Question: 95
Assume you are the portfolio manager for your pork producing company, the market leader in your country. Over time,
the industry has recovered from trichinosis as a risk. Your company has added new components to its portfolio, and
many have been to demonstrate to the public that its products are safe. It implemented the Agriculture Department�s
and Food and Drug Administration�s Hazard Analysis and Critical Control Point (HACCP) regulations and is
enhancing its image as �the other white meat�. However, now the entire industry is faced with a new epidemic known
as porcine epidemic virus, which is affecting pigs in 22 different states, and profits have decreased significantly. New
components now must be added to the portfolio.
This situation shows:
A . Resource re-allocation is required
B . Risk management is essential
C . The ROI of the new components must be determined
D . Portfolio rebalancing has led to the new components being in the top five priority list
Answer: B
Question: 96
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
Question: 97
Managing risk is key to the success of any initiative. Risk is considered to be inherent in any activity we do in project
management and at any level. Risk is part of project, program and portfolio management and has a different exposure
in each and every one. Multiple risks have already been spotted in your portfolio and you are now identifying,
assessing and developing risk response plans for them, in addition to monitoring and controlling them .
What are you looking for? You were finding this hard at first however you asked the help from a senior portfolio
manager and he redirected you to use
A . Weighted Ranking and scoring techniques, Portfolio Component inventory, Categorization
B . Weighted Ranking and scoring techniques, Quantitative & Qualitative Analysis
C . Capability & Capacity, Weighted Ranking and scoring techniques, Graphical Analytical methods, Quantitative &
Qualitative Analysis
D . Weighted Ranking and scoring techniques, Graphical Analytical Methods, Quantitative & Qualitative Analysis
Answer: B
Question: 98
You are managing a large construction portfolio. Recently, and due to budget cuts, you have been having resources
issues on multiple initiatives and has been struggling with maintaining a healthy resource allocations.
You are currently analyzing the capability and capacity for scarce machinery resources shared across three major
programs in the portfolio .
What are you currently applying?
A . Finite Capacity planning
B . Resource Schedules
C . Resource Management Tools
D . Resource Smoothing
Answer: A
Question: 99
In preparing your communications matrix, you identified five communication areas. One is portfolio governance
decisions.
A communication vehicle for these decisions is:
A . E-mails
B . Scorecards
C . Internal portal
D . PMO repository
Answer: C
Question: 100
You are the CIO of a real estate investment trust (REIT) that invests in apartments and condominiums in more than
50% of the states in your country. Your organization has as its goal to respond to any concerns that arise within 24
hours; for example, you want to make sure Wi-Fi sites are operational if there are any power outages, and people have
soft phone service available 24/7.
You are a member of the REIT�s Portfolio Review Board, and as a member of the executive team in terms of portfolio
risk management, you want to focus on:
A . Issues with product support
B . Identifying and managing liabilities
C . Interaction of component risks
D . Inconsistent processes
Answer: B

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Portfolio Management Professional (PfMP) Practice Test

PfMP exam Format | Course Contents | Course Outline | exam Syllabus | exam Objectives

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