Overall Risk

Overall Risk is the effect of uncertainty on the portfolio, program, or project as a whole. It reflects the combined exposure to all identified and unidentified risks, both threats and opportunities, and how they may influence the achievement of objectives.

Unlike individual risks, which affect specific elements, overall risk evaluates the aggregate impact across the entire initiative.

Characteristics of Overall Risk

• Aggregated View – Considers cumulative effects of multiple risks
• Systemic Impact – Influences the overall success or failure of the initiative
• Dynamic in Nature – Changes as the environment and project evolve
• Requires Strategic Oversight – Managed at the governance level, not just operational

Example Scenarios

• A portfolio faces high overall risk due to market volatility across multiple programs
• A program may appear stable at the task level but holds high overall risk from resource bottlenecks
• A project’s overall risk decreases after completing several high-risk phases successfully

Why Overall Risk Matters

• Supports Strategic Decision-Making – Informs prioritization and investment choices
• Enhances Visibility – Highlights systemic vulnerabilities across the initiative
• Strengthens Governance – Enables proactive oversight by sponsors and executives
• Drives Risk Response Planning – Facilitates comprehensive mitigation and contingency strategies

See also: Individual Risk, Risk Exposure, Risk Management, Risk Register, Strategic Alignment.