Project Governance & Portfolio Management Flashcards

A portfolio manager wants to visualize the tradeoff between strategic value and implementation risk for competing projects. The most suitable tool is:

Answer: Bubble Chart / Portfolio Map

A bubble chart (portfolio map) plots projects on two axes (e.g., value vs. risk) allowing visual comparison and investment decision-making.

Under PMBOK governance principles, a project manager should escalate an issue to the project sponsor when:

Answer: The issue exceeds the project manager's authority or defined thresholds to resolve

Issues exceeding the project manager's decision authority or defined thresholds must be escalated to ensure timely resolution at the appropriate governance level.

When an organization terminates a project for strategic reasons before completion, the primary governance obligation is to:

Answer: Conduct a formal closeout, capture lessons learned, and reallocate freed resources

Formal closeout ensures lessons are captured, commitments are wound down properly, and resources are redirected in an orderly, governed manner.

Which of the following best describes the role of a Project Management Office (PMO) in portfolio governance?

Answer: The PMO provides standards, tools, oversight, and reporting that support portfolio governance and decision-making

A PMO enables governance by establishing methodologies, templates, reporting mechanisms, and oversight processes that support informed portfolio decisions.

An organization applies a 'portfolio categorization' process. The main benefit of this activity is:

Answer: It groups components by type (e.g., run, grow, transform) to enable differentiated governance and funding strategies

Categorization (e.g., run-the-business vs. change-the-business) enables tailored governance, resource models, and investment thresholds appropriate to each category.

The concept of 'governance fit' in project management refers to:

Answer: Calibrating the level and formality of governance to the size, risk, and strategic importance of the project

Governance fit ensures that oversight is proportional—large, high-risk projects get rigorous governance while small, low-risk projects operate with lighter controls.

In benefits management, a 'benefits realization plan' should include:

Answer: The expected benefits, measurement metrics, realization timeline, and benefit owner accountabilities

A benefits realization plan defines what benefits are expected, how and when they will be measured, and who is accountable for achieving them.