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Program and Portfolio Risks

Uncertainties that arise at the program or portfolio level and have consequences for the projects contained within that program or portfolio.

Key Points

  • These risks originate above individual projects and can affect multiple projects simultaneously.
  • They are typically owned and coordinated by program or portfolio leadership, with linkage to project teams.
  • Responses often require cross-project coordination, shared decisions, and possibly reallocation of resources or funding.
  • They should be tracked in program/portfolio risk registers and referenced in project risk registers for visibility and alignment.

Example

A companys portfolio depends on a new enterprise platform contract. If contract negotiations are delayed, several projects using that platform will face schedule slips and cost increases. The portfolio manager owns the risk, coordinates mitigation across projects, and each project cross-references the portfolio risk in its own register.

PMP Example Question

A project manager learns of a potential portfolio-level budget cut that may reduce funding across several projects. What is the best action?

  1. Record it only in the project risk register and create a project-specific response.
  2. Escalate it to the program/portfolio risk register and coordinate a shared response, while cross-referencing it in the project register.
  3. Ignore it until the budget cut is formally approved.
  4. Immediately reduce project scope without engaging program or portfolio leadership.

Correct Answer: B — Escalate to the program/portfolio risk register and coordinate a shared response

Explanation: Because the uncertainty originates at the portfolio level and affects multiple projects, it should be owned and managed at that level, with the project linking and aligning its actions accordingly.

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