Program risk refers to the likelihood of a program failing to achieve its goals due to potential outcomes. This type of risk often involves risks that have an impact on multiple projects, such as integration risks between projects. Program risk is often monitored and managed at the program management level.
Here are a few examples of program risk in the business world:
- Delay in a key project: If a key project within a program is delayed, it can impact the overall timeline and budget of the program, leading to program risk.
- Changes in market conditions: If market conditions change unexpectedly, it can impact the feasibility of a program and lead to program risk.
- Resource constraints: If a program experiences resource constraints, such as a shortage of skilled labor or budget constraints, it can impact the ability of the program to achieve its goals and lead to program risk.
- Technological issues: If a program relies on technology that is prone to failure or has compatibility issues with other systems, it can lead to program risk.
- Political or regulatory issues: If a program is impacted by changes in political or regulatory environments, it can lead to program risk.
- Scope creep: If the scope of a program expands beyond what was originally planned, it can lead to program risk as it may impact the timeline and budget of the program.