Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

PfMP > Portfolio Risk Management > Flashcards

Portfolio Risk Management Flashcards

1
Q

Develop Portfolio Risk Management Plan Inputs?

A
  1. Portfolio management plan
  2. Portfolio process assets
  3. Organization process assets
  4. Enterprise environmental factors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Develop Portfolio Risk Management Plan T&Ts?

A
  1. Weighted ranking and scoring techniques
  2. Graphical analytical methods
  3. Quantitative and qualitative analysis
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Develop Portfolio Risk Management Plan Outputs?

A
  1. Portfolio management plan updates
  2. Portfolio process assets updates
  3. Organizational process assets updates
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Manage Portfolio Risks Inputs?

A
  1. Portfolio
  2. Portfolio management plan
  3. Portfolio reports
  4. Portfolio process assets
  5. Organizational process assets
  6. Enterprise environmental factors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Manage Portfolio Risks T&Ts?

A
  1. Weighted ranking and scoring techniques
  2. Quantitative and qualitative analysis
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Manage Portfolio Risks Outputs?

A
  1. Portfolio management plan updates
  2. Portfolio reports
  3. Portfolio process assets updates
  4. Organizational process assets updates
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Why is Portfolio Management Plan an Input of Develop Portfolio Risk Management Plan?

A

Because
- It provides guidance regarding governance model, performance management, communication, and stakeholder engagement for developing the risk management plan
- It may define roles and responsibilities for conducting risk management, budgets, risk management activities schedule, risk categories, definition of probability and impact, and stakeholder risk tolerances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

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

A

Because it provides
- List of portfolio components
- Portfolio component selection criteria
- Prioritization algorithms
- Portfolio risk register
- Portfolio issue register
- Portfolio performance matrices
- Portfolio resources and
- Portfolio budget
- Historic files, actual data, and lessons learned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

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

A

Because it provides
- Vision and mission statements,
- Organizational strategy and objectives,
- Organizational risk tolerance, and
- Lessons learned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Why is Enterprise Environmental Factors an Input of Develop Portfolio Risk Management Plan?

A

Because
- It can affect the risk management plan: organization culture and structure, infrastructure, OPM, legal and regulatory considerations, industry requirements, and market conditions.
- It may provide relevant information for the risk management plan: commercial databases, academic studies, market research, and benchmarking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How is the T&T of Weighted Rankings and Scoring Techniques used in Develop Portfolio Risk Management Plan?

A

To assess the risks in multiple portfolios and the overall structure of the portfolios

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How is the T&T of Graphical Analytical Methods used in Develop Portfolio Risk Management Plan?

A

To measure risk are defined

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How is the T&T of Quantitative and Qualitative Analysis used in Develop Portfolio Risk Management Plan?

A
  • Analyzing trends
  • Balancing the portfolio
  • Managing investment choices
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Why is Portfolio Management Plan Updates an Output of Develop Portfolio Risk Management Plan?

A

Because Portfolio Risk Management Plan is a subsidiary plan of the portfolio management plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Why is Portfolio Process Assets Updates an Output of Develop Portfolio Risk Management Plan?

A

Because it may lead to the update of portfolio process assets, such as portfolio funding

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Why is Organizational Process Assets Updates an Output of Develop Portfolio Risk Management Plan?

A

Because the portfolio manager may have recommendations for the update of organizational process assets, such as risk checklists, new risk categories, or subcategories

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Portfolio Risk Management Plan components?

A
  • Methodology
  • Roles and responsibilities
  • Risk measures
  • Frequency
  • Risk categories
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Why is Portfolio an Input of Manage Portfolio Risks?

A

Because Portfolio risks are identified for each of the authorized portfolio components, as well as for risk events that may affect more than one program or project

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Why is Portfolio Management Plan an Input of Manage Portfolio Risks?

A

Because It provides
- structure and guidance for performing portfolio risk identification, including roles and responsibilities, guidelines on use of tools
- details of the time and budget allocated to portfolio risk management.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Why is Portfolio Reports an Input of Manage Portfolio Risks?

A

Because Portfolio reports, in general, and portfolio performance reports, specifically, are important indicators for managing risks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Why is Portfolio Process Assets an Input of Manage Portfolio Risks?

A

Because
- It include the portfolio-related knowledge bases, such as lessons learned and historical information, which may help in managing risks.
- It provides templates used for risk management

22
Q

Why is Organizational Process Assets an Input of Manage Portfolio Risks?

A

Because they may be used
- The organization’s vision and mission, strategy and objectives
- The values

23
Q

Why is Enterprise Environmental Factors an Input of Manage Portfolio Risks?

A

Because they may be useful in identifying risks: commercial databases, academic studies, benchmarking, or other industry studies

24
Q

Portfolio Risk Register components?

A
  • List of identified risks
  • Risk owner
  • List of potential responses
  • Probability Impact Assessment
  • Risk triggers
25
Q

How is the T&T of Weighted Ranking and Scoring Techniques used in Manage Portfolio Risks?

A

The governing board uses weighted ranking and scoring techniques during recurring governance meetings to evaluate the existing risks and identify whether any new risks have arisen

26
Q

How is the T&T of Quantitative and Qualitative Analysis used in Manage Portfolio Risks?

A

In order that the governance board can assess the portfolio and consider rebalancing portfolio components, resource requirements, and portfolio budget in order to realign the portfolio risks
- To better understand the interdependencies, importance, timing, and confidence limits
- To determine deviations from the baseline, which may indicate the potential impact of threats or opportunities
- To evaluate the effectiveness of earlier risk response actions (Trends analysis)

27
Q

Why is Portfolio Management Plan Updates an Output of Manage Portfolio Risks?

A

Because the risk response plans are developed and accepted

28
Q

Why is Portfolio Reports an Output of Manage Portfolio Risks?

A

To help respond to risks, and issues and support decision-making
- The top portfolio risks in the risk register after all risk analysis is completed and adjustments have been made
- Governance recommendations that include portfolio risk status and responses risk responses and analysis
- Portfolio issues in the issue register after analysis is completed for those risks that were realized and include the response actions that will be taken

29
Q

Why is Portfolio Process Asset Updates an Output of Manage Portfolio Risks?

A

Because
- It may need to update the portfolio risk register, the portfolio issues register, and other documents
- The portfolio component lists will need to be updated as Governance recommendations for changes to portfolio components based on risks are accepted

30
Q

Why is Organizational Process Asset Updates an Output of Manage Portfolio Risks?

A

Because Organizational process assets may be updated: the risk assessment for the organization

31
Q

What is the Goal of Portfolio Risk Management?

A
  • Capitalizing on the potential opportunities
  • Mitigating those events, activities, or circumstances which can adversely impact the portfolio
32
Q

What is the Objective of Portfolio Risk Management?

A
  • To accept the right amount of risk commensurate with the anticipated reward to deliver the optimum outcomes for the organization in the short, medium, and longer-term
  • To increase the probability and impact of positive events and to decrease the probability and impact of events adverse to the value, the strategic fitness of the portfolio, and the balance of the portfolio
33
Q

What are Portfolio’s concerns with risks and issues that arise inside the specific program or project?

A
  • Maximizing the financial value of the portfolio
  • Tailoring the fit of the portfolio to the organizational strategy and objectives
  • Determining how to balance the programs and projects within the portfolio given the organization’s capacities and capabilities
34
Q

Purpose of Develop Portfolio Risk Management Plan?

A

Identification of portfolio risks, portfolio risk owners, risk tolerance
Creation of risk management processes

35
Q

Purpose of Manage Portfolio Risks?

A

Executing the portfolio risk management plan
- assessing risks
- responding to risks
- monitoring risks

36
Q

Type of sources that risks arise?

A

External and Internal

37
Q

Examples of external risk sources?

A
  • competitors, the competitive market, the financial market
  • political events, legal requirements, regulatory requirements
  • natural events, environmental concerns
  • technological advances, and globalization pressures
38
Q

Examples of internal risk sources?

A
  • Bankruptcy, corruption, lack of integrity
  • Shifting priorities, funding reallocation, corporate/organizational realignments
  • Management decisions,
  • Integrated management systems
  • Excessive number of concurrent projects
  • Dependency on external participants whose training is highly specialized (either a positive or negative risk)
39
Q

Risk identification participants?

A

Executive management
Operations management
The portfolio manager
The program & project management team

40
Q

Executive management’s perspective of the portfolio’s risk?

A

Portfolio value
Time to market,
Funding and investment measures
Customer brand and organization reputation
Organizational operating model
Organizational strategy and objectives
Existing products and services

41
Q

Operations management’s perspective of the portfolio’s risk

A
  • Issues with product and project development
  • Organization products, services
  • Processes needed to support change
42
Q

The portfolio manager’s perspective of the portfolio’s risk?

A

Reporting, data accuracy
Portfolio component risk information availability
The quality of portfolio data
The link between organizational strategy and the portfolio
Risk concerns of the executive and operations management

43
Q

The program & project management team’s perspective of the portfolio’s risk?

A

The portfolio components’ time, cost, and scope commitments

44
Q

What are Structural risks?

A

Those risks concerning with an organization’s ability to organize its portfolio mission with the organization’s hierarchical and clustered structures, which define the methods and approaches in which the organization operates and performs its tasks

45
Q

Execution risks?

A

(Idontknow!)
Those risks concerning with an organization’s ability to coordinate and supervise throughout the accomplishment of its mission, which defines how change is managed in performing the organization’s tasks

46
Q

Risk Management Plan components?

A

Roles and responsibilities
Risk measures (Definition of Risk probabilities and impacts rate)
Frequency & Risk management activities
Risk categories
Reference to the corporate risk management guidelines, policies, and procedures
Organization’s risk strategy, tolerance, and thresholds
The approach that will be used by the governing bodies for assessing risk in proposed new portfolio components
The approach to balance investment risk and manage the overall expected return against known risks

47
Q

Portfolio Risk Register components?

A

List of identified risks
Risk owner
List of potential responses
Probability Impact Assessment
Risk triggers
Updated risk categories

48
Q

Where is Risk Management critical?

A

Where interdependencies exist between high-priority portfolio components
Where the cost of portfolio component failure is significant
When risks from one portfolio component raise the risks in another portfolio component

49
Q

Purpose of Risks watch list?

A

To monitor risks with obviously low ratings of probability and impact that are not retained for additional work

50
Q

What are Manage Portfolio Risks stages?

A

(1) risks are identified
(2) risks are analyzed
(3) risk responses are developed
(4) risks are monitored and controlled

51
Q

Example of Quantitative and Qualitative Analysis T&T used in Manage Portfolio Risks?

A

Sensitivity analysis
Trade-off analysis
Modeling and simulation
Variance and Trend analysis (schedule, budget, performance, and time-to-market)
Risk probability and impact assessment
Assumptions analysis
Influence diagrams
Risk-portfolio component chart
Heat maps
Net present value (NPV)
Estimated net present value (ENPV)
Payback period (PBP)
Return on investment (ROI)
Internal rate of return (IRR)
Ranking and scoring of portfolio risks

52
Q

What are Risk owner’s responsibilities?

A
  • Making decisions to choose the most appropriate response strategy or a mix of strategies
  • Developing specific actions to implement those decisions
  • Developing contingency plans and identifying the conditions which trigger their execution
  • Developing a fallback plan for execution if the selected strategy is not sufficiently effective

PfMP (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions