The major functionality is the assessment of risks which come from the lower levels to a view that shows the influence on the strategic goals of an organization. All respective tasks should lower the influence of a risk to a program, portfolio or an organization. The level serves as escalation path to other parts of the executing organization or to the upper management level. One of the major impacts is often the financial impact of the respective risks in a project if they exceed a certain threshold.
The second purpose for assessing risks here is the feedback to the Tactical Level about accepting risks and their influences. This ensures the appropriate handling of risks particularly on the Tactical Level. There might be reasons to accept a certain risk on the Strategical Level which is judged differently direct inside the project.
The third and often mentioned influence is the request for support from the project to the upper management or other departments of the executing organization. This can help to create a mitigation strategy for a risk or ensure proper support in case the risks occurs.