2. What is portfolio Management
• Portfolio management (PM) techniques are the systematic methods for
analysing or evaluating a set of projects or activities for achieving the
optimal balance between stability and growth, risks and returns; and
attractions and drawbacks. It focuses on achieving this balance by using
the limited resources available in best possible manner.
3. Why Portfolio Management
Portfolio Management is used to select a portfolio of new product development
projects to achieve the following goals:
• Maximize the profitability or value of the portfolio
• Provide balance
• Support the strategy of the enterprise
8. The risk-reward portfolio mapping involves keeping the projects into various categories
as per the quadrant they fall into. It is followed by labelling of the 4 quadrants of the
diagram as shown below.
• · Pearls: They have high probability of success and generate high payoffs
• · Oysters: They are long shots, but with high payoffs
• · Bread & Butter: They are low-risk projects with low rewards
• · White Elephants: They are low probability and low payoff projects