Portfolio Governance Management Flashcards

Question

Why is Organizational Process Assets an Input of Develop Portfolio Management Plan?

Answer 1

It provides organizational processes, procedures and knowledge base for reference & developing the portfolio management approach

Answer 2

* That corporate, environmental, and governmental variables can contribute to the determination of how to manage certain aspects of a portfolio * To establish processes to monitor specific EEFs and their critical values which can switch on specific portfolio management processes (escalations, change requests, portfolio management process improvements, etc.)

Answer 3

To elicit requirements for the portfolio management plan and that is greatest in the portfolio development (discovery) - Facilitation techniques (focus groups and brainstorming) - Survey techniques (interview and observation survey techniques) - Collaboration techniques (consensus or majority vote)

Answer 4

- To assign decisions making authority regarding portfolio components - To assign performance review and reporting roles and responsibilities across each program, project, or operational component - To identify components resource staffing & releasing mechanisms

Answer 5

- Analyzing and aligning subsidiary plans for consistency - Communicating changes to those responsible in order to resolve issues and reconcile changes

Answer 6

It might be unable to implement the portfolio Other developments warrant updates to portfolio strategy

Answer 7

To manage the portfolio in alignment with the organizational strategy and the portfolio strategic plan, various portfolio policies, processes, and guidelines as well as portfolio management knowledge bases may need to be updated

Answer 8

1, Governance Model 2, Portfolio Oversight process 3, Managing Strategic Change process 4, Change Control and Management process 5, Balancing Portfolio and Managing Dependencies method 6, Performance Management Planning 7, Communication Planning 8, Risk Management Planning 9, Procurement Planning 10, Managing Compliance method 11, Portfolio Prioritization Model

Answer 9

* Decision-Making Rights: Establishes who has the authority to make decisions, their responsibilities, rules, and protocols. * Controls and Gate Reviews: Implements controls like gate reviews at various project stages to evaluate progress, forecasted value, and updated risks. Decisions are made on whether to continue, hold, or cancel projects. * Organizational Governance: Defines how the organization directs and controls its operations and strategic activities, addressing stakeholders' legitimate rights and expectations. * Portfolio Governance: Outlines processes for selecting, prioritizing components, and allocating resources to meet strategic objectives. * Roles and Responsibilities: Clearly defines roles for portfolio managers, sponsors, stakeholders, and project managers.

Answer 10

A PMO's structure, responsibilities, and implementation approach for - Sharing and optimizing scarce or common resources - Communicating governance decisions, changes in the portfolio, and stakeholder communication according to sponsor and stakeholder requirements

Answer 11

* Change control structure * Outline and Processes to manage the response to significant strategic change

Answer 12

* The process of managing changes to approved scope and requirements, schedules, and funding, including review and approval by stakeholders and governing bodies * A change structure facilitating impact analysis (often provided in component proposals), deliberate review and approval or disapproval, prioritization, and scheduling of proposed change activities

Answer 13

Process of optimizing the mix of portfolio components to further the strategic objectives of the organization - To plan and allocate resources according to strategic direction - To maximize portfolio return within the organization’s predefined desired risk profile

Answer 14

* Portfolio level procurement directives or standards that will be leveraged * Which should be considered when managing the portfolio

Answer 15

Way to address compliance requirements

Answer 16

To align the portfolio with the organizational strategy and objectives - To validate preexisting portfolios or inventory of work against strategy updates which could change the key descriptors, categorization, and organization of portfolio components - To determine which portfolio component to include

Answer 17

It (portfolio structure) identify the portfolio and sub-portfolios based on organizational areas in scope, hierarchies, and portfolio goals

Answer 18

Because the portfolio components are the basis for defining or redefining the portfolio

Answer 19

- Because it summarizes strategic objectives, evolving aspects of the strategy by organizational areas, portfolio milestones, dependencies, challenges, and risk - The detailed identification, categorization, and ranking and scoring criteria may be derived from the portfolio roadmap (As a minimum, the defining criteria and categories should be in alignment with the portfolio roadmap)

Answer 20

It contains the guidance to evaluate portfolio components and make judgments to their alignment and priority (as the approach and intent of management in identifying, approving, procuring, prioritizing, balancing, managing, and reporting a portfolio of portfolio components)

Answer 21

* Providing templates, tools, data, and information regarding the portfolio * Providing guidance for defining the portfolio components

Answer 22

To identify portfolio components that meet requirements for consideration by A preliminary comparison of all inventoried portfolio components against the portfolio component definition (a standard set of key descriptors)

Answer 23

Portfolio component number, Portfolio component code, Portfolio component description, Type of portfolio component, Strategic goals supported, Quantitative benefits, Qualitative benefits, Portfolio component customer, Portfolio component sponsor, Key stakeholders Resources required.

Answer 24

Each identified portfolio component is compared to the categorization criteria and is assigned to a given category for the purpose of scoring, ranking, evaluating, and selecting between similar portfolio components where address similar organizational needs and strategic concerns

Answer 25

* Increased profitability (revenue increase, generation, cost reduction and avoidance) * Market share increase * Risk reduction * Regulatory/compliance * Efficiency improvement * Process improvement * Continuous improvement * Foundational (e.g., investments that build the infrastructure to grow the business) * Business imperatives (e.g., internal toolkit, IT compatibility, or upgrades)

Answer 26

They are used for ranking and scoring portfolio components within each category based on values assigned

Answer 27

The portfolio is updated with portfolio components that have been strategically aligned, evaluated, and prioritized for ongoing selection, authorization, and optimization

Answer 28

Because the result of the Define Portfolio process requires a change in the portfolio components included or excluded or in the dependencies in the roadmap

Answer 29

Because The result of the Define Portfolio process may indicate a change in the portfolio management approach is required - the prioritization criteria is changed - the categories or classification of portfolio components are revised - the approach is changed on how a portfolio is optimized, authorized, and monitored

Answer 30

* Organizational strategy alignment * Goals and objectives * Benefits, financial and nonfinancial * Market share, market growth, or new markets * Costs (lost opportunity costs) * Dependencies, internal and external * Risks, internal and external * Legal/regulatory compliance * Human resources capabilities and capacities * Technology capabilities and capacities * Urgency

Answer 31

* the achievement of organizational strategy and objectives * measuring the benefits contribution of a portfolio component

Answer 32

The portfolio’s currently active and inactive portfolio components are evaluated for optimization to ensure that resources are allocated to achieve organizational strategy and objectives that deliver the most value to the organization

Answer 33

Because it provides the organizational strategy “to-be” vision for the portfolio that will guide the portfolio optimization, including the dependencies, timing, and sequencing of portfolio components

Answer 34

Because it provides - The approach for defining, optimizing, and authorizing portfolio components - The intended approach to managing the portfolio, subportfolios, and portfolio components

Answer 35

Various portfolio reports are reviewed and analyzed to optimize the portfolio - Portfolio risk reports help to understand major risks associated with existing portfolio components and any potential issues which may arise from implementing the portfolio - Resource pool reports help to understand resource allocation, availability, and capability - Portfolio capability and capacity reports provide the maximum capability of the organization to meet resource demand or requirements - Additional portfolio reports that assist in portfolio optimization are performance, financial, and value or benefits

Answer 36

Because it provides relevant data, tools, templates, and information regarding the portfolio and guidance on optimizing the portfolio

Answer 37

It enables the organization to achieve maximum portfolio benefits given current resource constraints - Human resource capability and capacity analysis: limiting factors for the number of portfolio components the organization can execute - Financial capability and capacity analysis: constraining factors for the number of portfolio components or the size of portfolio components the organization can execute - Asset capacity and capability analysis: limiting factor for the number of portfolio components and the size of portfolio components the organization can execute

Answer 38

To weight and rank portfolio components within each category based on values assigned

Answer 39

- Cost-Benefit Analysis: To determine the financial analytical value preferred by the organization - Quantitative Analysis: To examine factors of interest, such as resource loading requirements over time or cash flow - Scenario Analysis: To create a variety of portfolio scenarios and evaluate their possible outcomes based on various assumptions - Probability Analysis: To evaluate portfolio components using success and failure probabilities and ranges of impacts if they occur for the estimated cost, time, anticipated revenues, risk, and other criteria - SWOT Analysis: To determine the value of portfolio components in the marketplace and how portfolio components may affect (or be affected by) competitors - Market/Competitor Analysis: To determine the value of portfolio components in the marketplace and how portfolio components may affect or be affected by competitors - Business Value Analysis: To predetermine the values to improve the market value or organizational improvement and then apply those values to the portfolio components

Answer 40

To visualize the portfolio that helps compare, balance, and monitor portfolio components

Answer 41

Because the following may change * component relationships * ranking criteria * priorities * dependencies * goals * portfolio component information (including the rationale for the decision to remove a portfolio component or include a portfolio component) * portfolio component budget and resource approvals/exceptions (iterative to take into account both internal and external factors that change the costs, risks, or values of the portfolio components)

Answer 42

Because The organizational areas, portfolio components, and high-level timeline may be changed due to optimization

Answer 43

Because the optimizing approach, criteria, and other information about maintaining a balanced portfolio may need to be updated in the portfolio management plan

Answer 44

Because various portfolio reports may be updated, such as - resources (capability and capacity may be updated) - risks (risks ratings and types of response may be created or changed as existing portfolio components or newly selected portfolio components are evaluated) - issues - value/benefits - performance - financials

Answer 45

Because The optimize portfolio procedures and guidelines information may need to be updated and stored

Answer 46

Because - The portfolio includes a list of portfolio components having been approved that need to be authorized with their respective funding and resource requirements - The portfolio contains a list of portfolio components for deactivation with remaining funding and resources that need to be returned to the organization’s funding and resource pools

Answer 47

Because it describes the process to authorize the portfolio components to allocate and reallocate resources and funding and to define the key communication needs associated with the portfolio management process

Answer 48

Because various portfolio reports are reviewed and analyzed to authorize portfolio components: financials/funding, resources, and governance decisions (authorize components and provide detailed information on the authorization justification).

Answer 49

To formally authorize a new portfolio or portfolio components To effect funding allocations and transfers To report and communicate the results

Answer 50

- To indicate which portfolio components have been assigned resources - All changes and updates made to the authorized portfolio components are communicated by means of the updated PMIS and other communication methods

Answer 51

Because The portfolio is updated with the status of newly authorized portfolio components, their respective funding and allocated resources, and any other related information that is applicable

Answer 52

Because - Updates for budget/funding or resource allocation - Updates to the process for evaluating portfolio component authorization if the current established process does not meet the portfolio management requirements - ...

Answer 53

Because various portfolio reports may be updated - Governance decisions - Resources, assets (updated resource pool): the resources allocated to the authorized portfolio components; the resources reallocated from terminated or cancelled portfolio components - Portfolio funding (changes in the funding and resource pools): the funding allocated to the authorized portfolio components, the funding, which is reallocated from terminated or canceled portfolio components and ready for use in funding new approved portfolio components, the funding that is transferred to the funding pool)

Answer 54

Because the Authorize Portfolio component procedures and guidelines information may need to be updated - Human resource assignment procedures - Transferring funding among components to and from the funding pool

Answer 55

The portfolio provides critical information on portfolio components in order to consider portfolio component proposals and changes and funding allocations to make sure that the portfolio’s current portfolio components and planned or future initiatives will address organizational strategy and objectives

Answer 56

Because it provides an integrated view of the portfolio strategy and is a useful tool for portfolio communication (high-level strategic direction and dependencies within the portfolio)

Answer 57

It provides the portfolio management approach and establishes how a portfolio is defined, organized, optimized, and controlled

Answer 58

Report on portfolio performance, resource capability and capacity, risks/issues, and financial information - To evaluate the portfolio and its individual components to decide what actions should be taken in order to minimize risk and maximize the benefits that the portfolio delivers to the organization - To determine whether the portfolio is performing as expected - To evaluate whether the portfolio benefits align with organizational strategy

Answer 59

Because it provides - portfolio policies, processes and procedures - portfolio knowledge bases, historical performance information - governance decisions - open issues

Answer 60

To review the current status of the portfolio and to determine if any decisions need to be made regarding the portfolio and its portfolio components by - Recurring scheduled around significant portfolio milestones - Triggered by external events such as financial drivers, regulatory changes, and completion of significant portfolio components or deliverables

Answer 61

To provide portfolio oversight and gather potential issues and risks (compiling status reporting, facilitating meetings, and conducting questionnaires and surveys)

Answer 62

* Portfolio performance * Portfolio component proposals and changes * Risks and issues * Availability of resource (human, technology, and other assets) capability and capacity * Funding allocations and future investment requirements * Organizational standards compliance

Answer 63

Because it results from governance decisions: a portfolio component needs to be added, terminated, or changed in some fashion (The method for documenting and communicating the governance decisions may be a spreadsheet, a text document, or found within the portfolio management information)

Answer 64

Because it may be revised as the result of a governing body decision regarding * the portfolio oversight approach * decision tracking * other types of status reporting

Answer 65

Because reports (portfolio performance, resource capability and capacity, risks/issues, and financial information) may be updated based on determined risks/issues, actions, and decisions made to change the portfolio or to maximize the benefits that the portfolio delivers to the organization

Answer 66

Because - PPAs may require updating, such as portfolio policies, processes and procedures, and portfolio knowledge bases - PPAs need to be updated with governance decisions and open issues

Answer 67

A framework that defines how organizational assets and resources are managed within the portfolio

Answer 68

* Ensure resources are allocated to portfolio components that provide the most significant value for the investment. * Align portfolio components with the organization's strategy and objectives.

Answer 69

* To Ensure that all portfolio components are comparable. * To Ensure that components with a common goal are measured on the same basis, regardless of their origin in the organization * To Allow the organization to balance its investment and its risks between all strategic categories and goals

Answer 70

A common set of decision filters and criteria used for categorizing, evaluating, and selecting portfolio components in the portfolio

Answer 71

Groups of components having a common goal

Answer 72

* To ensure that only components aligning with the organizational strategy and meeting defined criteria are selected * To prevents the inclusion of unnecessary or poorly planned components, which could increase workload and reduce benefits from truly important and strategically aligned portfolio components

Answer 73

* Assigning or Reassigning Criteria for Ranking Portfolio Components * (Planning and allocating resources) Determining Resource (Human, Assets, and Technology) Capability, Resource Capacity Available, and Constraints for Portfolio Components * Performing Risk Analysis on Portfolio Components Based on the Organization’s Risk Profile * Consider trade-offs between different portfolio objectives (Managing risk versus return, Balancing short-term goals against long-term goals, Balancing different types of projects to align with the organizational strategy) * Evaluating and determining performance and expected value and benefits (financial and nonfinancial) of portfolio components * Determining which portfolio components should receive the highest priority within the portfolio * Identifying portfolio components to be suspended, reprioritized, or terminated based on the balancing or rebalancing activities (maximizing portfolio return within the organization’s predefined risk profile and tolerances) * Incorporating groupings of portfolio components to ensure that portfolio components include all component dependencies, including cost and benefit dependencies for the entire group

Answer 74

* predefined portfolio management criteria * the organization’s desired risk profile * portfolio performance metrics * capacity constraints

Answer 75

* Authorizing portfolio component proposal development or portfolio component execution * Allocating resources to authorized portfolio components * Reallocating funding and resources from deactivated and terminated portfolio components to activated portfolio components or the resource pools * Update relevant portfolio reports (funding updates, resource assignments, and allocations) and document governance decisions * Communicating changes and decisions for the authorized portfolio components.

Answer 76

Conducting recurring and nonrecurring governance meetings for reviews and decision making * Reviewing information on portfolio resources, risks, performance, and financial information * Ensuring compliance with organizational standards * Make governance decisions * Reporting portfolio changes and information on resources, risks, performance, and financials * Communicating governance decisions.

Answer 77

* net present value (NPV) * discounted cash flow (DCF) * internal rate of return (IRR) * cost benefit ratio * payback * options analysis

Answer 78

* resource loading requirements over time * cash flow

Answer 79

* decision trees * flowcharts * Monte Carlo simulation

Answer 80

* risk vs. return charts * histograms * pie charts * buble charts

Answer 81

* Identifying qualified portfolio components through the evaluation and assignment of key descriptors, * Categorizing portfolio components to which a common set of decision filters and criteria may be applied * Evaluating portfolio components with a ranking and scoring model comprising weighted key criteria. * Select the most valuable and aligned components to include in the portfolio while ensuring a balanced mix of short-term and long-term goals, risks, and resource demands. * Document the portfolio structure, including selected components, categorization, and rationale for inclusion. * Update relevant governance documents to reflect the defined portfolio.

Answer 82

ROI (Return on Investment): A measure of the profitability or efficiency of an investment, calculating the ratio of net profit to the cost of the investment. A higher ROI generally indicates a more favorable investment.

Answer 83

IRR (Internal Rate of Return): The discount rate at which the net present value (NPV) of an investment becomes zero. A higher IRR typically suggests a more attractive investment.

Answer 84

PBP (Payback Period): The time it takes for an investment to generate enough cash flow to cover its initial cost. A shorter payback period is generally preferred, indicating a faster return on investment.

Answer 85

DCF (Discounted Cash Flow): A valuation method used to estimate the value of an investment based on its expected future cash flows, discounted to their present value. This method helps assess the profitability of an investment over time

Answer 86

NPV (Net Present Value) is a financial metric used to determine the present value of an investment's future cash flows, minus its initial cost. It accounts for the time value of money, recognizing that a dollar today is worth more than a dollar in the future. To calculate NPV, subtract the present values of cash outflows (costs) from the present values of cash inflows (revenues or benefits) over a specific period. A positive NPV generally indicates a potentially profitable investment.

Answer 87

* Discount Rate: This reflects the cost of capital and the investment's inherent risk. A higher discount rate lowers the NPV, as it emphasizes the present value of future cash flows more heavily. * Time Horizon: Longer horizons may lead to higher NPVs by capturing more future cash flows, but they also introduce greater uncertainty. * Cash Flow Projections: Accurate cash flow projections are crucial for reliable NPV calculations. These projections must account for factors like market conditions, competition, and operational efficiency. * Sensitivity Analysis: This analysis helps understand how changes in key assumptions or variables (e.g., revenue growth or discount rate) can affect NPV outcomes. * Comparison with Alternatives: NPV should be compared with that of other investment opportunities to identify the most attractive option.

Answer 88

According to the contractual milestones of each of the portfolio components.

Answer 89

* Resources * Risks and issues * Value/benefits * Performance * Financial

Answer 90

* Resources * Risks and issues * Value/benefits * Performance * Financial

Answer 91

* Funding/financial * Resources

Answer 92

* Funding/financial * Resources * Governance decicions

Answer 93

* Resources * Risks and issues * Performance * Financial

Answer 94

* Resources * Risks and issues * Performance * Financial * Governance decisions

Portfolio Governance Management Flashcards

(118 cards)