Practice Test 2 ◾ 279
76. a. Set it up to treat the project as an option
Options analysis is appropriate in this situation as the project is large,
with risks, and requires a large capital investment. NPV is not appropri-
ate as it is not a routine project. This approach can be extensive as dif-
ferent options are determined, but by doing so a potentially protable
project may become affordable when the risks may seem too great.
Milosevic, pp.61–63
Portfolio Management Standard, p. 74
Task 7 in the ECO in Performance
77. a. Document this approach in the methodology section
The portfolio risk management plan should include a methodology sec-
tion that includes the approach, tools, and data sources that will be used.
Portfolio Management Standard, p. 128
Task 2 in the ECO in Risk Management
78. d. Create the portfolio mix with the greatest potential
As the portfolio is optimized it evaluates the selection criteria and ranks
components. The purpose is to create the portfolio mix that has the
greatest potential to support organizational strategy collectively.
Portfolio Management Standard, p. 71
Task 6 in the ECO in Performance
79. a. Components are focused on alignment to strategic objectives
The objective of portfolio management is to align the portfolio to strate-
gic objectives and approve only those components that support strategic
objectives. The portfolio then is re- examined if the strategy changes.
Portfolio Management Standard, p. 46
Task 1 in the ECO in Strategic Alignment
80. c. Portfolio Management Plan
This plan is an input to the Manage Supply and Demand process. It
contains guidelines in a number of areas to report risks, communicate
with the team, and to recommend changes in components such as
those that are due to constraints on resources.
Portfolio Management Standard, p. 94
Task 4 in the ECO in Governance