This concept refers to the alignment of all projects within a portfolio with the overarching business or organization strategy. This alignment ensures that the portfolio generates value and supports the strategic goals of the business. This typically involves the prioritization of projects based on strategic importance, potential value, available resources and risk tolerance. It also involves regular reviews and adjustments to maintain alignment as strategies, resources or environmental factors change.

Portfolio governance involves the policies, procedures, standards, and processes that guide project portfolio management. These may include project selection and prioritization criteria, decision making processes, performance measurement and reporting standards, risk management standards, or resource management policies. A strong governance framework helps ensure consistency, keeps everyone on the same page, and provides a foundation for making informed decisions about the portfolio.

This concept involves monitoring and managing the performance of the project portfolio. It includes developing key performance indicators (KPIs) to measure portfolio performance, tracking these KPIs over time, assessing portfolio health, and making adjustments as required. Performance management also helps demonstrate the value of the portfolio, aids in decision making, and provides insights for continuous improvement.

As a critical concept in Project Portfolio Management (PPM), Risk Management involves identifying, analyzing and responding to project risks, and aims at increasing the likelihood and impact of positive events and reducing the likelihood of negative events in the project. PPM introduces a structured risk management process, which includes risk identification, risk assessment, risk response planning and risk monitoring, and control on a portfolio level. This ensures risk consideration in selection of projects, allocation of resources and decision-making on project continuation. By understanding potential risks across the portfolio, organizations can prepare for uncertainties, reducing the potential for harm and increasing opportunities for benefits.

Capacity and Resource Management is focused on efficient use of organizational resources to maximize the value of the project portfolio. It is responsible for planning and scheduling resource capacity to meet project demands, manage resource conflicts, and ensure optimal utilization of resources. It gives stakeholders an overview of resource usage and availability, enabling better forecasting and planning, managing resource requirements as per project timelines and needs, and balancing resource allocation across the portfolio in accordance with strategic objectives and priorities.

Financial Management is a vital aspect of PPM contributing to ensuring the project portfolio delivers value in line with the organization's financial objectives. It involves activities such as budgeting, cost estimation, financial planning, cost control, and financial performance review. These activities help in understanding the financial health of projects, making informed budget allocation decisions across the project portfolio, and improving the cost efficiency of projects. Effective financial management helps companies realize the expected return on investment from each project in the portfolio.

Portfolio Value Management focuses on evaluation and demonstration of the value delivered by the project portfolio. It includes techniques to assess project value in terms of financial and strategic contributions, and measure obtained value against planned value from portfolio perspective. Value management helps in guiding strategic decision such as selection and prioritization of projects, allocation of resources, and verification of success in meeting business objectives. Value management ensures an objective approach to maximize value of the portfolio through balanced selection and execution of projects.

The Project Portfolio Communication Management is a critical concept in Project Portfolio Management that refers to the planning, development, execution, monitoring, and control of messages that are sent to and received from stakeholders. It's crucial in making sure that everyone involved - from the project team members to the interested parties - have the right information at the right time. The process often involves the conveyance of the project portfolio objectives, risk assessment results, resource allocation decisions, and so on.

Stakeholder Management is another essential concept in Project Portfolio Management. Stakeholders are individuals, groups, or organizations who may affect, be affected by, or perceive themselves to be affected by a decisions, activities, or outcomes of a project. Stakeholder management ensures that these stakeholders are adequately engaged in the project depending on their influence and potential impact. Good stakeholder management allows projects to avoid conflicts and misunderstandings that could put a halter to the project's development, thus ensuring smoother operations.

Benefits Realization Management is the process of identifying, executing, and maintaining the promised gains or returns anticipated from a provided investment related to the business change, which is often calculated as a result of the successful completion of a project. It’s a systematic way to identify the benefits of a project portfolio in order to ensure that the benefits are realized and aligned with the overall objectives of the company.

Project Portfolio Change Management is the structured methodology and approach to manage change at the portfolio level. This change can come in many forms such as changes in strategic direction of the company, shifts in market conditions, changes in project scope, etc. This concept involves deciding whether to implement a change, control it, and manage its impact once it has been decided. The purpose is to maximize the benefits and minimize the risks associated with change in an organization.

Enterprise Program Management concerns about managing and coordinating multiple projects that contribute to a common business objective. It's about achieving strategic objectives and benefits realization through successful delivery of programs and projects. Although both program management and project portfolio management focus on managing multiple projects, the enterprise program management concentrates on the achievement of benefits and strategic alignment, rather than optimizing the use of resources across the portfolio.