Program Management Professional (PgMP) — Question 307

A program manager is initiating a cross-industry program comprised of several projects. Due to multiple constraints and the complex nature of different industrial requirements, the investors hold a conservative attitude regarding the program risks.

What should the program manager do when developing the program risk strategy?

Answer options

• A. Encourage the stakeholders to be optimistic and set higher thresholds due to sufficient reserve funding
• B. Set lower risk thresholds based on the stakeholders' risk preference and organizational risk appetite after risk assessment
• C. Establish the risk thresholds based on the differences among the stakeholders' preferences recorded in the program risk response strategy
• D. Identify each risk based on the risk thresholds grounded into a number of criteria set in the program risk response strategy

Correct answer: B

Explanation

The correct answer is B because it emphasizes aligning risk thresholds with the stakeholders' preferences and the organization's overall risk appetite, which is crucial in a complex program. Options A and C suggest unrealistic or too broad approaches, and option D focuses on identification rather than the strategic development of risk thresholds.