Program Management Professional (PgMP) — Question 395

To increase its presence and promote its products and services in new markets, a company begins to implement its new business strategy. The company's CEO endorses a new program to promote and support this strategy. However, before the program is formally initiated, this strategy must be aligned with the organization's strategic goals and objectives.
What should the program manager develop first?

Answer options

• A. Program's risk threshold
• B. Program risk management plan
• C. Program resource management plan
• D. Program risk and issue governance forum

Correct answer: A

Explanation

The correct answer is A, as establishing the program's risk threshold is crucial for determining how much risk the organization is willing to accept as it aligns its strategy. The other options, while important, depend on understanding the risk threshold first before developing plans or forums related to risk management.