Portfolio Risk Management ◾ 79
15. Assume you have worked with your cross- functional team of stakeholders to
identify the key risks affecting the asphalt company’s portfolio. There were
ve negative risks: inclement weather, health and safety concerns, lack of
resources, lack of funding, and inability to complete programs and projects
on time. A positive risk was increased demand for the product. You are
maintaining a portfolio risk register. A next step is to:
a. Assign a risk owner
b. Review the negative risks for root causes and assumptions
c. Determine potential responses for each identied risk
d. Set up triggers for the negative risks
16. Assume you have prepared your portfolio risk management plan and have
determined responses to risks to the portfolio that might occur whether they
are threats or opportunities. For those risks considered to be the most criti-
cal to the portfolio, such as a competitor releasing a similar product earlier
than planned by your company, decreasing employee morale shown by
many people leaving to take positions elsewhere resulting in lack of needed
resources, or a subcontractor defaulting that is supporting several prime con-
tractors, one way to display this information to key stakeholders is by:
a. Maintaining a complete risk register and highlighting the critical risks
b. Using a cause- and- effect diagram
c. Preparing a sensitivity analysis
d. Using Monte Carlo
17. Assume you are planning to present the results of your portfolio risk analy-
sis at the next meeting of the Portfolio Review Board. You plan to show a
comparison of the relative importance and impact of variables with a high
degree of uncertainty and to those that are more stable. A useful approach is
to prepare:
a. A probability/ impact matrix
b. An expected monetary value analysis
c. A tornado diagram
d. An assumptions analysis
18. As you work to manage portfolio risks, you decide to review the portfolio
management plan. It is helpful in identifying risks as it:
a. Provides a list of key governance decisions
b. Lists the root causes of previously identied risks
c. Lists key stakeholders that may inuence the risk posture
d. Requires an understanding of the portfolio roadmap