With the APM re-writing the Body of Knowledge being extended to cover project, programme and portfolio management can we expect different approaches to risk management each or will the same process apply to each level in the same way.
What is the project risk management process?
The project risk management process is well known. With initiate the project, identify the risks, asses the risks, plan risk reduction measures, implement the responses. These processes apply to the different levels of an organisation project, programme and portfolio, it is just the ways of application that are different.
Differences in impact?
The main difference is the level of the impact.
In a Project Management environment the impact being considered is the impact on the project success criteria, typical time, cost and quality but also issues such as quality and safety. These are quite tactical project objectives.
In a Programme risks will have an impact on the programme benefits. Will the organisation receive the benefits from the completion of the projects in the programme. Typically this will include the user application of the system or the increased sales of a service.
In a Portfolio the risks are associated with the future health and growth of the organisation. Risks at a portfolio level include things such as the lack of competitiveness or innovation within the organisation or increased competition in particular markets.
The basic risk process is the same at each level, but the way it is applied is different for each level. For example a brainstorming workshop might be appropriate for a small project team however for senior directors a series of face-to-face meetings followed by a board presentation may the more appropriate and cost effective.
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