How does risk management in Program Management differ from Project Management?

In Program Management, risk management is inherently broader and more strategic than in Project Management due to the nature of programs, which comprise multiple interrelated projects. The correct choice highlights how program risk management recognizes the interconnectedness and interdependencies of these projects. It focuses on understanding how risks in one project can impact another and assesses aggregated risks that arise from the combination of these projects, thus allowing for a holistic view of risk that can significantly influence the success of the program as a whole.

This approach is crucial because managing risks in isolation could lead to significant oversights that might endanger the program's objectives. By considering the interplay between projects, program risk management ensures that risks are not only managed at the project level but also evaluated in terms of their cumulative effect on the overall program, enabling more informed decision-making and prioritization of resources.

In contrast, the other viewpoints do not fully capture the essence of program risk management. Ignoring interdependencies, focusing solely on budget-related risks, or claiming an identical approach to project management overlooks the complexity and strategic nature of program management initiatives. These distinctions underscore the necessity for a more integrated and comprehensive risk management approach within the context of programs.