Portfolio Management

Overview of portfolio management: Portfolio management is not an unrelated personal possession but a collection of entire securities. Portfolio management emphasizes the selection of securities included in the portfolio based on the contribution of securities to the entire portfolio. This means that there is a synergistic effect or interaction between securities. As a result, the effect of the entire portfolio is no longer the sum of that part. When securities are merged into one portfolio, the revenue for that portfolio is the average of the revenue of the portfolio's securities.

The process required by a portfolio administrator called Project Management System (PPMS) is a comprehensive, documented, dynamic portfolio management strategy, business processes, tools, planning and management. PPMS provides direction and constraints to individual project / program management systems and confirms that they are coordinated to accelerate dispute settlement. Comprehensive PPMS should include tactical and strategic processes. The strategic process addresses ongoing performance issues of ongoing portfolio projects. The strategic process focuses on the evolution of the portfolio, including the selection of new projects that fulfill the business objectives and strategies. In addition, recommendations to reduce the scope of the project and to eliminate projects that conflict with portfolio objectives and strategies should also be part of the PPMS process.

The key to effectively and effectively implement PPM is a knowledgeable portfolio manager and support process that includes the principles of project management. These disciplines are necessary to evaluate portfolio managers about the health and value of the portfolio and the ability to make effective business decisions on project approval, prioritization, financing, staffing and enforcement It provides mechanisms and data. By comparing actual performance with predictions, determining the "nonconforming" state is an important function, allowing managers to solve problems quickly and restore portfolios to compliance.

The Project Management Institute (PMI®) announces "Port Portfolio Management Standards" in June 2006 to meet the needs of a series of documented processes representing excellent practices proven in the field of portfolio management did. According to PMI, "Portfolio management consists of one or more of selecting, prioritizing, evaluating and managing projects, plans, and other related work to achieve strategic objectives based on consistency with organizational strategy The portfolio management is (a) the focus of the organization to ensure that the project selected for investment matches the portfolio strategy, (b) the effective project of the project Combining to focus on providing and contributing to its contribution to the portfolio. "(PMI, 2006, p. 5)