An effective Risk Management Process requires a commitment on the part of the Program Manager (PM), the Program Management Office (PMO), and the contractor to be successful. A government risk management program should have a goal to share program risks with the development, production, or support contractor and not transfer all risks to a contractor. […]
Enterprise Risk Management (ERM) is a risk process used to identify, assess, manage, and control risks to exploit opportunities they might provide within an organization. It provides an overall framework for an organization’s risk management program by establishing objectives. Definition: Enterprise Risk Management is a process, effected by an entity’s board of directors, management and
Element 6 “Verify, Validate, and Document Risk Reduction” is where the Program Manager (PM) verifies the implementation and validates the effectiveness of all selected risk mitigation measures through appropriate analysis, testing, demonstration, or inspection. Document the verification and validation in the Hazard Tracking System (HTS). MIL-STD-882E “Standard Practice for System Safety” – Page 13 –
Element 7 “Accept risk and document”. Before exposing people, equipment, or the environment to known system-related hazards, the risks shall be accepted by the appropriate authority as defined in DoD Instruction 5000.02 “Operation of the Defense Acquisition System”. The system configuration and associated documentation that supports the formal risk acceptance decision shall be provided to
Element 8 “Manage Life-Cycle Risk”. After the system is fielded, the system program office uses the system safety process to identify hazards and maintain the Hazard Tracking System (HTS) throughout the system’s life-cycle. This life-cycle effort considers any changes to include, but not limited to, the interfaces, users, hardware and software, mishap data, mission(s) or
Element 5 “Reduce Risk” is where Mitigation measures are selected and implemented to achieve an acceptable risk level. Consider and evaluate the cost, feasibility, and effectiveness of candidate mitigation methods as part of the Systems Engineering process and Integrated Product Team (IPT) processes. Present the current hazards, their associated severity and probability assessments, and
Element 4 “Identify and document risk mitigation measures” is where risk mitigation(s) is identified, and the expected risk reduction(s) of the alternative(s) shall be estimated and documented in the Hazard Tracking System (HTS). The goal should always be to eliminate the hazard if possible. When a hazard cannot be eliminated, the associated risk should be
Element 1 “Document the system safety approach” is where the Program Manager (PM) and contractor document the system safety approach for managing hazards as an integral part of the Systems Engineering Process. MIL-STD-882E “Standard Practice for System Safety” – Page 10 The approach should describe the risk management effort and how the
Element 2 “Identify and document hazards” is where hazards are identified and recorded in a document that is controlled and monitored. The document will service at the foundation for analyzing, tracking and controlling current and future hazards. MIL-STD-882E “Standard Practice for System Safety” – Page 10 Risk Identification (which includes Hazards) is the activity that
Element 3 “Assess and document risk” documents the severity category and probability level for a potential mishap(s) for each hazard. Each risk is assessed using the definitions in Tables 1 and Table 2 below from MIL-STD-882E. Standard: MIL-STD-882E “Standard Practice for System Safety” – Page 10 Severity Category To determine the appropriate severity category as
Risk Tracking (sometimes referred to as Risk Monitoring) is an activity of systematically tracking and evaluating the performance of risk mitigation actions against established metrics throughout the acquisition process and develops further risk mitigation options or executes risk mitigation plans, as appropriate. Its intent is to ensure successful Risk Mitigation and should be done as
System Safety is the application of engineering and management principles, criteria, and techniques to achieve acceptable risk within the constraints of operational effectiveness and suitability, schedule, and cost throughout the system’s lifecycle. System safety covers the entire spectrum of Environment, Safety, and Occupational Health (ESOH) considerations. It is an integral part of the Systems Engineering (SE) process
Risk analysis is the activity of examining each identified risk to refine the description of the risk, isolate the cause, determine the effects, aid in setting risk mitigation priorities. It refines each risk in terms of its likelihood, its consequence, and its relationship to other risk areas or processes. The analysis begins with a detailed
Risk Mitigation (it used to be called Risk Handling) is the process that identifies, evaluates, selects, and implements options in order to set risk at acceptable levels given program constraints and objectives. This includes the specifics on what should be done, when it should be accomplished, who is responsible, and associated cost and schedule. Definition:
A Risk Mitigation Plan Implementation is meant to ensure successful Risk Mitigation occurs and is based upon a program Risk Mitigation Plan (RMP). It should: [1] Determines what planning, budget, and requirements and contractual changes are needed, Provides a coordination vehicle with management and other stakeholders, Directs the teams to execute the defined and approved
Risk Identification is the activity that examines each element of the program to identify associated root causes that can cause failure, begin their documentation, and set the stage for their management. It begins as early as possible in successful programs and continues throughout the program. The Program Management Office (PMO) should develop and employ a
The Risk Management Process Model (see figure below: DoD Risk Management Process ) includes the following key activities, performed on a continuous basis: [1] Risk Identification, Risk Analysis, Risk Mitigation Planning, Risk Mitigation Plan Implementation, and Risk Tracking. Figure: Risk Management Process AcqLinks and References: DoD Risk, Issue, and Opportunity Management Guide for Defense
A Risk Management Plan (RMP) is a written process record, including how risks are found, evaluated, and dealt with. It also includes monitoring risk control, a cost-benefit analysis, and a look at the financial effects. A project manager prepares an RMP to address risks and their potential impact on a program and consists of ways
System Safety is the application of engineering and management principles, criteria, and techniques to achieve acceptable risk within the constraints of operational effectiveness and suitability, schedule, and cost throughout the system’s lifecycle. System safety covers the entire spectrum of Environment, Safety, and Occupational Health (ESOH) considerations. It is an integral part of the Systems Engineering (SE) process
