SAFe® 5 Lean Portfolio Management SAFe® 5 Lean Portfolio Management Financial Management & Budgeting

Question 1

What is the primary mechanism SAFe® 5 uses to fund work within a Lean Portfolio?

Accepted Answer

Lean Budgets allocated to Value Streams

Answer

Annual project budgets

Answer

Individual team budgets approved quarterly

Answer

Fixed-price contracts per Epic

Question 2

In SAFe® 5, what is 'participatory budgeting'?

Accepted Answer

A process where portfolio stakeholders collaborate to allocate Lean Budgets across Value Streams

Answer

Executives unilaterally setting all budgets

Answer

Individual teams negotiating their own funding

Answer

An annual budget review led by Finance only

Question 3

How often should Lean Budget guardrails typically be reviewed in SAFe® 5?

Accepted Answer

Every PI (Program Increment)

Answer

Monthly

Answer

Annually

Answer

Only when a major Epic is approved

Question 4

What is the purpose of 'Lean Budget guardrails' in SAFe® 5?

Accepted Answer

To establish spending policies that guide investment decisions within Value Streams

Answer

To define detailed line-item spending rules for each team

Answer

To prevent any budget changes during a PI

Answer

To track individual employee expenses

Question 5

In SAFe® 5, which statement best describes the difference between CapEx and OpEx in the context of Lean Budgets?

Accepted Answer

Understanding CapEx vs OpEx helps organizations optimize tax treatment and financial reporting of portfolio investments

Answer

All Agile work is classified as OpEx

Answer

CapEx funds only hardware; OpEx funds only software

Answer

SAFe® eliminates the need to distinguish between CapEx and OpEx

Question 6

What does 'decentralized decision-making' mean in the context of SAFe® 5 portfolio funding?

Accepted Answer

Value Stream stakeholders have authority to make day-to-day spending decisions within guardrails

Answer

All financial decisions are made by individual contributors

Answer

The CFO delegates all budget authority to Scrum Masters

Answer

No one has authority to approve spending without executive sign-off