A portfolio’s continuous life cycle consists of several stages:
- Initiation
- Planning
- Execution
- Optimization
- Monitoring and Control
As a portfolio progresses through its life cycle, information and decisions are passed within and between each of these stages. This is ongoing and not necessarily sequential. Within the same business change life cycle, the portfolio can be “refreshed” with the addition or deletion/modification of the portfolio components. Replanning can occur when the portfolio mix is reviewed at the end of each business change life cycle when a top-down alignment is taken into account. All stages within the portfolio, including initiation, are adaptable, flexible, and fluid. As management decisions are made within the portfolio life cycle, the portfolio can be changed and updated to adapt to internal and external factors.
NOTE: You cannot simply practice answering questions to prepare for the PfMP exam. The questions are provided to help you assess your knowledge and to get you familiar with the types of questions that are on the exam. Make sure you focus your study efforts on reading The Standard for Portfolio Management and other books, watching videos, passing mock exams, review your Knowledge Map, and filling gaps in your portfolio management knowledge.
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