Project Portfolio Management Certification (PfMP) Practice Exam 2025 - Free PfMP Practice Questions and Study Guide

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What is the aim of using a structured risk management framework in portfolios?

To increase the likelihood of project failure

To systematically identify and assess risks

The aim of using a structured risk management framework in portfolios is primarily to systematically identify and assess risks. This process is essential for understanding potential threats that could impact the portfolio's objectives, project timelines, or overall resource allocation. By implementing a structured approach, organizations can evaluate risks in a consistent manner, prioritize them based on their potential impact, and develop strategies to mitigate or respond to them effectively.

The systematic identification and assessment of risks allow organizations to not only anticipate issues before they arise but also prepare contingency plans, allocate resources efficiently, and make informed decisions that enhance the likelihood of achieving portfolio goals. This proactive stance toward risk management supports overall portfolio performance and the success of individual projects within the portfolio.

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To ensure all projects are equally funded

To establish communication among project teams

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