Program Management

CHAPTER 9Risk‐Based Governance

This chapter addresses the strategic elevation of governance practices, built on the foundation of having a balanced risk approach to enhanced program decisions. Risk management is a core strategic muscle for organizations. Many organizations remain unable to formulate risk properly or have it as a central stage for their governance and decisions. This is a typical lagging area of maturity that requires continual attention from the executive team and a consistent enablement for program stakeholders in order to better practice the proper risk management required skills.

Key Learnings

• Understand the skills necessary to design a risk‐based program governance
• Learn how to gauge the risk appetite and practice cascading the risk management strategy across portfolios of programs and projects
• Explore the linkages between risk‐based governance and achieving meaningful and faster decisions
• Understand the important tie between risk management and reinforcing the learning and maturing of the practices of program management in the organization
• Develop a strong awareness of the attributes necessary to make PMOs successful in achieving a mindset shift to governance that encompasses strategic agility

9.1 WHY RISK‐BASED PROGRAM GOVERNANCE MATTERS?

Risk management matters. Risk‐based governing is critical for managing programs life cycle and achieving timely and effective decisions. Addressing the resistance that is in the mind and practices of organizations ...