The program manager’s risk environment is complex, because risks at the business level, program level, or project level can impact the program. That’s why categorization of risks facilitates better risk identification activities.
Additionally, the program manager must scrutinize which business- and program-level risks project manager’s should address. It would be too burdensome and unnecessary for project managers to try to address all the risks that exist at each of these levels. Just as the program manager filters and decides what project managers need to address, the project manager also has to filter and decide what project-level risks are shown or escalated to the business level. Realize that the business level would be overwhelmed if its managers saw or even knew about every project-level risk.
So what are the various risks in each category?