How can the Trade off between Corporate Business Strategy and Project Risk be Optimized?

The biggest challenge for business leaders today is making sure initiatives that are undertaken at the project level are aligned with the strategic and financial goals of their organizations. Unfortunately, business leaders who recognize the need to use tools to validate the business case of every initiative are finding relatively few truly viable options. Organizations are looking to implement a project and portfolio management (PPM) solution to help ensure they pursue only those projects that provide the greatest business value with the minimum or accepted organizational risk. This paper provides a practical framework in aligning business opportunities with overall project risk through an assessment process from the strategy, technology exposure, organizational change management, and communication, financial, project organization, project management and project complexity point of view. In the proposed framework, if the project with an accepted risk matches the organizational business strategy, it will be forwarded for the rest of evaluation process in the Project Portfolio Management. To demonstrate the approach, a case study is conducted in one of the biggest Iranian Power Industry Contractors.