PfMP Certification Portfolio Risk Management 3

Question 1

What is the primary purpose of portfolio risk monitoring and controlling?

Accepted Answer

To track identified risks, monitor residual risks, identify new risks, and evaluate risk response effectiveness

Answer

To close out all risks at the end of each fiscal year

Answer

To report risk status to regulators and external stakeholders only

Answer

To transfer all unresolved risks to individual project managers

Question 2

An organization's board has communicated a low tolerance for regulatory compliance risks. How should the portfolio manager respond?

Accepted Answer

Adjust the risk management approach to prioritize avoidance or transfer strategies for compliance-related risks

Answer

Remove all components with any regulatory exposure from the portfolio

Answer

Delegate all compliance risk management to the legal department

Answer

Accept compliance risks since they cannot be controlled by the portfolio

Question 3

Which technique involves gathering expert opinions iteratively and anonymously to reach a consensus on risk identification?

Accepted Answer

Delphi Technique

Answer

Nominal Group Technique

Answer

Affinity Diagram

Answer

Root Cause Analysis

Question 4

A portfolio manager wants to represent risks visually based on probability and impact to quickly communicate priority. Which tool is most appropriate?

Accepted Answer

Probability and Impact Matrix

Answer

Risk Register

Answer

Risk Breakdown Structure

Answer

Tornado Diagram

Question 5

When performing quantitative risk analysis, the 'Expected Monetary Value (EMV)' of a risk is calculated as:

Accepted Answer

Probability multiplied by Impact

Answer

Probability minus Impact

Answer

Probability divided by Impact

Answer

Probability plus Impact

Question 6

What is the role of a 'risk owner' in portfolio risk management?

Accepted Answer

The individual accountable for monitoring a specific risk and implementing its response plan

Answer

A board member responsible for approving the risk budget

Answer

The portfolio manager who created the risk register entry

Answer

An external auditor who validates risk assessments annually

Question 7

Which of the following is an example of a risk opportunity response strategy at the portfolio level?

Accepted Answer

Exploit

Answer

Transfer

Answer

Mitigate

Answer

Avoid