Portfolio Management Professional (PfMP) — Question 49

A new component that will deliver an enhanced product manufacturing system has been presented for addition to the portfolio. The system is expected to significantly reduce costs by reducing the amount of time it takes to create product parts. However, the user interface will be difficult to work with, so any cost savings may be lost over time.
To ensure that the portfolio remains balanced and expected returns are managed, the governance board should use a portfolio:

Answer options

Correct answer: A

Explanation

The correct answer is A, performance plan, because it focuses on measuring and managing the effectiveness of the new component in achieving cost savings while ensuring the portfolio's overall performance remains balanced. The other options, such as risk management, financial, and strategic plans, do not specifically address the performance implications of adding a new component with potential user interface challenges.