PMI PfMP Exam - Topic 1 Question 3 Discussion

Actual exam question for PMI's PfMP exam

Question #: 3
Topic #: 1

While defining the portfolio mix, the portfolio manager performs a categorization of the portfolio components based on multiple categorization criteri

a. Which of the following is considered as a portfolio component category?

AContinuous Improvement

BRisk Reduction

CAll of the options

DProcess Improvement

Show Suggested Answer

Suggested Answer: C

The number of categories is usually limited. Examples include: Increased profitability (revenue increase, generation, cost reduction and avoidance), Risk reduction, Efficiency improvement, Regulatory/compliance, Market share increase, Process improvement, Continuous improvement, Foundational (e.g., investments that build the infrastructure to grow the business), and Business imperatives (e.g., internal toolkit, IT compatibility, or upgrades)

by Gail at May 10, 2022, 04:10 AM

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Elmer

7 months ago

Just to clarify, all these options can fit into portfolio components.

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Jesusita

7 months ago

Wait, are we really considering Process Improvement as a category?

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Lindsay

7 months ago

All of the options makes sense to me!

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Alise

8 months ago

I think Risk Reduction is more relevant here.

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Dexter

8 months ago

Continuous Improvement is definitely a category.

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Jina

8 months ago

I’m a bit confused because "All of the options" seems too broad, but it might actually be the right answer if they all relate to portfolio components.

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Janet

8 months ago

I practiced a similar question where "Process Improvement" was mentioned as a category, so I’m leaning towards that being correct here too.

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Joanne

8 months ago

I feel like "Risk Reduction" is definitely a key component, but I'm not entirely sure if it’s the only one that qualifies.

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Tina

8 months ago

I think I remember that portfolio components can be categorized in various ways, but I'm not sure if "Continuous Improvement" fits as a category.

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Isabelle

8 months ago

I'm a bit confused on this one. I know Azure Policy can be used to manage extensions, but I'm not sure if that's the most "minimal administrative effort" approach. Let me think this through a bit more.

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Shelton

8 months ago

This question feels a bit tricky... I have a vague memory of something regarding how members need to be uniquely identifiable, but I can't recall the specifics.

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Leonor

8 months ago

Option C about specifying test techniques seems too specific. I don't think the V-Model goes into that level of detail, so I'll rule that one out.

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Micah

8 months ago

Okay, I've got this. Bilingual safety communication is clearly an outreach objective to ensure OSHA's message reaches a diverse workforce. I'm confident that's the right answer.

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Omega

8 months ago

Okay, I think I've got it. Target resolution times are used to set expectations with users, ensure customer satisfaction, and provide predictable responses to incidents. The options are getting at those different ways they are used.

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Amber

8 months ago

Demonstrating support from senior management is crucial. If the leadership is on board, that sends a strong signal to the rest of the organization.

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