Portfolio Management Professional (PfMP) — Question 16

Which of the following is not one of the four stages for portfolio risk management?

Answer options

• A. risks are categorized
• B. risk responses are developed
• C. risks are identified
• D. risks are monitored and controlled

Correct answer: A

Explanation

The correct answer is A because categorizing risks is not considered one of the core stages in portfolio risk management. The other options—developing risk responses, identifying risks, and monitoring and controlling risks—are essential steps in effectively managing risk within a portfolio.