07 Oct Project portfolio risk
Project portfolio risk is more than the cumulative risks of the individual projects. While the risk associated with one or two individual projects in the portfolio may be low, collectively they could have a high impact on the portfolio if, for example, both projects are high-priority in support of a major organizational goal. Project portfolio risk management focuses on organizational goals, projects, and resources, which are known as the portfolio triple constraints. Formally and systematically managing the risks in consideration of these constraints is another way for organizations to evaluate the health of the project portfolio and make adjustments to maintain balance.
For this Discussion:
- 1-Compare project risk management to project portfolio risk management. What are the similarities? What are the differences?
- 2- What mitigation actions can organizations take to maximize opportunity and reduce threats from risks to a project portfolio? Describe at least two actions.
- 3- Which of the mitigation actions do you think is most effective? Why?
- 4- Why is it important for decision makers to understand metrics and measurements?
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