Project Portfolio Management For Risk Reduction: The Importance Of Corporate Governance
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The implementation of every business venture is basically to make profits (Sorensen, 2012). Profit making however will not be obtainable except the management of a business organization is able to successfully develop and apply strategies that are geared towards ensuring that the costs of producing the products and services it markets are kept below the revenue generated through the sales of these products and services (Noda & Bower, 1996). Based on the recognition of this basic necessity for successful business operations, the management of business organizations work towards steadily developing strategic approaches and applying feasible marketing programs to ensure that the products and services offered by the organization surpass the forces acting against its success (such as intense competition) and remain in continuous demand in the market within which it operates.
It is important to note that the implementation of the various strategies developed to ensure that the business continually operates at a profitable level must be effected in a regulated manner in order to ensure that the required results are effectively achieved as well as, to prevent these strategies from yielding negative outcomes rather than the positive anticipated results (Nag, & Hambrick & Chen, 2007). The importance of working towards ensuring that the implementation of the developed business plans are effectively managed and delivered is as important as it is to develop the business plans in the first place (Mulcaster, 2009). Every business strategy comprises of various activities strategically employed at different stages or over certain periods and organized in such a way that they all contribute to the final achievement of the goals of the business strategy (Sorensen, 2012). The importance of effectively organizing the activities required for the final implementation of the business strategy is the major factor behind the practice of Project Portfolio Management (Rajegopal, McGuin & Waller, 2007).
Based on the identified importance PPM for the successful and feasible implementation of the necessary activities for business success (Denney, 2005), it is important to consider the various variables to contribute to its efficiency. The aim of this research is to investigate if project portfolio management leads to overall reduction in business risk when making