86 ◾ PfMP® Exam Practice Tests and Study Guide
13. d. Risk tolerant company
Some organizations are risk adverse, while others are risk tolerant. This
company is moving quickly into a new way of working as a way to pro-
vide greater benets to customers and promote market leader ship.
Portfolio Management Standard, p. 123
Task 1 in the ECO in Risk Management
14. d. Risk management strategies
The size of the organization and program and project management
practices are considerations in identifying portfolio stakeholders, but
certain stakeholders are identied based on the portfolio’s goals and its
risk management strategies.
Portfolio Management Standard, p. 26
Task 1 in the ECO in Risk Management
15. b. Review the negative risks for root causes and assumptions
Once a negative risk is identied, it should be reviewed using root
cause analysis to determine if there are other associated risks and also
to see if the risk can be avoided once the cause is identied. As well,
assumptions are a source of risk and require review using assumption
analysis techniques.
Portfolio Management Standard, pp. 130–131
Task 4 in the ECO in Risk Management
16. a. Maintaining a complete risk register and highlighting the critical risks
The risk register is used throughout portfolio management. A column
can be added to show if it is a critical risk, and reports for stakeholders
can focus on the status of these critical risks, the date of possible and
actual impact, recovery actions, and the date the risk is closed.
Portfolio Management Standard, pp. 37, 131
Task 4 in the ECO in Risk Management
17. c. A tornado diagram
The results of a sensitivity analysis can be displayed in a tornado dia-
gram to show the parameters that lead to a high degree of variability
and those with a lesser effect.
Portfolio Management Standard, pp.132–133
Task 5 in the ECO in Risk Management