Portfolio Management Professional (PfMP) — Question 6

A portfolio manager is having a status meeting with the various program managers within the portfolio. One of the program managers mentions a new risk that may impact a deliverable. While it has a low probability, the risk would nearly double the program’s costs and affect the overall portfolio if it occurred.
The best course of action for the portfolio manager to take is to:

Answer options

• A. advise the program manager to manage low probability risks within the program and escalate them if their probabilities increase.
• B. ensure contingency reserves are allocated and application approaches are developed.
• C. escalate new portfolio risks to the steering committee in accordance with the risk management plan.
• D. perform a risk assessment with subject matter experts to understand the risk’s impact.

Correct answer: C

Explanation

The correct choice is C because escalating new portfolio risks to the steering committee aligns with the risk management plan, ensuring that significant risks are addressed at a higher level. While A, B, and D may be reasonable actions, they do not adequately address the need for formal escalation of new risks that could impact the overall portfolio.