Portfolio Management Professional (PfMP) — Question 26

One of the primary purposes for which an organization establishes a portfolio governance model is to:

Answer options

• A. select and prioritize components and allocate limited internal resources to accomplish organizational strategic objectives.
• B. define the decision-making process through which new components are initiated and existing components are cancelled.
• C. select and prioritize components, mitigate risks, and ensure revenue goals are met.
• D. define the decision-making process through which new components are initiated, put on hold, or cancelled.

Correct answer: D

Explanation

The correct answer, D, accurately describes the governance model's role in determining how components are initiated, paused, or terminated. Options A and C focus on selection and prioritization, but do not address the decision-making process. Option B, while similar, does not include the aspect of putting components on hold, which is covered in the correct answer.