PPM

 Portfolio Management is concerned with the implementation of business capabilities based on the road maps, taking into account the triple constraints of management disciplines.

The rapid change and fierce competition are the new normal. Organizations today have to develop dynamic strategic planning and accelerate the development cycle of loose-coupling capabilities. Modern portfolio management is rooted in the concept of diversification, which involves spreading investments across a range of assets to reduce risk. 

Modern project portfolio management (PPM) emphasizes that a well-diversified portfolio can achieve a more favorable risk-return trade-off. PPM provides comprehensive fusing of a firm's strategic capabilities, tightly coupled to implement and oversee governance. 

Key characteristics of modern portfolio management from risk management perspective 

-Risk Management: Risk is defined by standard deviations, measuring an investment's return volatility. Investors can accept greater risk for a higher return.

-Risk Tolerance: Determining risk tolerance allows for constructing a diversified portfolio that optimizes potential return for the chosen risk level.

-Efficient Frontier: The efficient frontier represents the highest expected return for a given risk level or the lowest risk for a given expected return, illustrating risk and return trade-offs.

-Periodic Review and Rebalancing: Regularly review and rebalance the portfolio to ensure risk preferences are met by well-defined GRC principles.

-Adjusting to Changing Risk Preferences: Adjust the portfolio as risk preferences change over time, such as taking on more risk early in one's career compared to later in life.

-ESG Investing Consider environmental, social, and governance (ESG) factors, ensuring investments align with values like environmental sustainability, workplace equity, and ethical governance.

The risk management function permeates all functions and should not be a separate function at all, but rather taken as guidelines of business best practices executed in this larger portfolio management framework. Whereas Program Management and Portfolio Management are concerned with the implementation of those capabilities based on the road maps, taking into account the triple constraints of time, money, and resources. The ultimate goals are to accelerate organizational performance and improve organizational maturity.

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