| Red | There are significant issues with the project.
The project requires corrective action to meet business objectives. The issue cannot be handled solely by the project manager or project team. One or more aspects of project viability — time, cost, scope — exceed tolerances set by the project board. | The matter should be escalated to the project sponsor and program manager immediately. |
| Yellow | A problem has a negative effect on project performance but can be dealt with by the project manager or project delivery team.
Action is taken to resolve the problem or a decision made to watch the situation. One or more aspect of project viability — time, cost, scope — is at risk. However, the deviation from plan is within tolerances assigned to the project manager. | The project board should be notified using a progress report or scheduled briefing with the sponsor. |