Trade off between risk management, value creation and strategic alignment in project portfolio management

Projects portfolio management allows the company to select, prioritize, integrate, manage and check its projects in a multi project context. In this paper, we consider a very important part of the projects portfolio management namely the selection of projects. Indeed, the greatest challenge for managers today is to be sure that the projects initiated achieve the strategic and financial objectives of the company. Our paper proposes a framework for project selection based on three main criteria: value creation, risk management and alignment with the business strategy. After a brief review of the literature regarding the basic concepts used, we propose bivariate analyses: risk-value, risk-alignment and value-alignment. Our contribution in this paper is to design a framework that realizes the trade-off between the three criteria.