ITIL 4 Foundation Practice Exam

What is the purpose of portfolio management practice in ITIL 4?

1. To ensure cost-effectiveness in project delivery

2. The practice of executing services in isolation from others

3. To maintain an organization’s project funding and resource constraints

4. The practice of optimizing organizational resources

The correct answer is: To maintain an organization’s project funding and resource constraints

The purpose of portfolio management practice in ITIL 4 is to maintain an organization’s project funding and resource constraints. This practice involves overseeing and managing the portfolio of all projects and services within an organization, which includes evaluating and balancing resource allocations, funding demands, and strategic objectives. By effectively maintaining the organization's project funding and resource constraints, portfolio management helps ensure that the organization can prioritize and execute projects and services that align with its goals and maximize value. This practice considers various factors for resource assignment, including capacity, budget limits, and strategic alignment, allowing for informed decision-making about which initiatives to pursue and which may need to be deferred or canceled. Through this structured approach, organizations can adapt to changes in priorities and market conditions, ensuring long-term sustainability and efficiency.