PgMP Practice Questions #10
As a program manager, you are informed of a new portfolio-level risk that could affect your program and its components. What should you do to ensure effective risk management across the program?
A. Communicate the risk details to impacted component teams and ensure it is tracked and managed at the component level
B. Seek guidance from the steering committee on how to handle portfolio-level risks
C. Record the risk at the program level and monitor it
D. Record the risk at the program level and ensure it is also documented and tracked within each impacted component
Analysis
In this scenario, you, as a program manager, have been informed of a new portfolio-level risk that could impact your program and its components. This situation requires you to manage the risk effectively by ensuring that it is recognized, tracked, and addressed at both the program and component levels. The focus here is on cascading risk management, as the risk originates from the portfolio level and affects multiple program components. The question assesses your understanding of risk escalation, tracking, and communication processes in alignment with program governance and risk management standards.
Analysis of Options
Option A: Communicate the risk details to impacted component teams and ensure it is tracked and managed at the component level. This option suggests handling the risk solely at the component level, which is insufficient in this case. As the risk originates at the portfolio level, it requires tracking and management at the program level as well to ensure alignment with the overall program objectives and strategies. Tracking the risk only at the component level could lead to inadequate oversight and management from a program perspective, making this option incomplete.
Option B: Seek guidance from the steering committee on how to handle portfolio-level risks. While seeking guidance can be helpful, the steering committee typically provides governance and high-level oversight. For ongoing programs, the governance framework and risk management processes should already be established, so seeking further guidance may be unnecessary. This option might be appropriate during the planning phase when the program is defining its approach to cascading risks. However, for an active program, the program manager should have clear processes in place for handling such risks.
Option C: Record the risk at the program level and monitor it. Recording and monitoring the risk at the program level is essential, but it’s not sufficient on its own. While program-level tracking provides centralized oversight, it’s also necessary to document and track the risk at the component level to ensure each impacted component is fully aware and able to address the risk locally.
Option D: Record the risk at the program level and ensure it is also documented and tracked within each impacted component. This option is the most comprehensive approach. Recording the risk at the program level ensures that the program manager has a consolidated view of the risk and can oversee how it impacts each component. Additionally, documenting and tracking the risk within each impacted component enables detailed monitoring and tailored response strategies at both the program and component levels. This approach aligns well with the principle of cascading risk management and ensures that the risk is appropriately managed across all levels of the program.
Conclusion
The most appropriate answer is Option D: Record the risk at the program level and ensure it is also documented and tracked within each impacted component. This approach aligns with best practices in program risk management by allowing for centralized oversight while enabling component-level tracking. According to the Program Risk and Issue Governance framework (as noted in the Program Management Standard, Fifth Edition), this ensures that risks are escalated and addressed at all necessary levels, promoting a timely and coordinated response across the program.
PgMP Certification Exam Content Outline Mapping
| Domain | Task |
|---|---|
| Governance | Task 7: Establish escalation policies and procedures to ensure risks are handled at the appropriate level. |
Topics Covered
- Program-Level Risk Management
- Risk Escalation and Governance
- Cross-Component Risk Tracking
- Cascading and Compounding Risks
- Risk Documentation at Program and Component Levels
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