Practice Test 2 ◾ 217
38. Assume you are working for a University that offers a masters degree in
project management. While it was one of the rst Universities in your coun-
try to offer this degree, now about 75 other Universities are offering degrees
or certicate programs. Your University requires that all courses be taken on
campus; it does not have a distance learning program. As a result, enroll-
ments have decreased even though it is a quality program. The decreasing
enrollments now are viewed as a negative risk to continue the program at
the University. You are assigned as the risk owner and are analyzing this risk
through probability and impact. You should:
a. Discuss with the Portfolio Review Board that unless an on- line compo-
nent can be added, enrollments will continue to decrease
b. Use the probability and impact ratings as stated in the portfolio risk man-
agement plan
c. Note that if tuition costs are decreased, enrollments will stabilize
d. Complement the probability/ impact analysis with sensitivity analysis
before making recommendations
39. Assume your Portfolio Review Board completed its analysis of the existing
components in the portfolio and decided to terminate a new product for a
new stent to assist heart patients. At the time it was approved, its features
far surpassed any on the market, and it seemed since safety and quality are
the key priorities, regulatory approval time would be minimal. However the
Center for Devices in the Food and Drug Administration found a major aw
in your company’s product, and now a competitor has a comparable prod-
uct on the market. As the portfolio manager, it is your responsibility now
to notify the program manager and team that the program is canceled, and
most will lose their jobs as a result. In this situation, your best course of
action is to:
a. Make sure the people involved know the decision was one the organiza-
tion’s executives made as members of the Portfolio Review Board
b. Let the team know the termination is due to the competition being rst
to market
c. Use the human resources person on the Portfolio Review Board and ask
him to navigate the negative impact on the people involved
d. Personally offer assistance to anyone on the team in locating work and
provide references stating why the project was terminated