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262 PROJECT PORTFOLIO MANAGEMENT
that we would say more about risk in Section 9. This is because risk management
is an essential part of PPM. There should be a relationship between Project Se-
lection and Risk, as we note in Chapter 9.3. But, risk is often ignored. Denial
reigns supreme, often leading otherwise sage senior managers into accepting and
approving risky projects because they have been led to believe that there is no po-
tential downside.
Project Portfolio Management is an important approach toward bringing proj-
ects and operations together so that the investments in projects are fully aligned
with the strategy and goals of the firm. It is quite easy to accomplish, but it re-
quires an effort to bridge the gap that traditionally exists between the operations
and projects disciplines. It requires some cultural change and a few new prac-
tices. It also will benefit from integration of the tools used for both disciplines. All
of this is discussed here in Section 9.
