Risk Management Guidance

2009
NiwotRidge LLC
GlenB. Alleman
[RISK MANAGEMENT GUIDEANCE]
The managementof riskisa critical successfactorof any projector program.Thisdocumentisa
collectionof riskmanagementcategoriesthatare usedtoask the question“didyouthinkaboutthisrisk
and itsimpacton our probabilityof success?”

[RISK MANAGEMENT GUIDEANCE] October12, 2009
2 RequirementsRisks |NiwotRidge LLC
RiskManagementisan essential elementof everyproject.The riskmanagementapproachmust be
analytical,foreword looking,structured,informative,andcontinuous.Riskassessmentsstartasearlyin
the projectlife cycle aspossible andshouldidentifycritical technical,performance,schedule,andcost
risks.
Once risksare identified,soundriskhandlingstrategiesandactionsare developedanddocumented.As
a projectprogresses,newinformationimprovesadditionalinsightintoriskareasandallowsthe
continuous refinementof the riskhandlingstrategies.
A close relationshipbetweenthe IntegratedProjectteam(IPT) members
RE QU IR E ME NT S RIS K S
 Can the current requirementsbaseline be identified?
● How isthisbaseline represented?
● Can all the requirementsbe tracedtothe needcapabilitiesandthe implementationefforts?
● Are the operational requirementsproperlyestablishedandclearlystated?
 Is the requiredoperatingenvironmentdescribedaccuratelyandinsufficientdetail?
 Are sufficientsubjectmatterexpertsavailabletoreview the requirements?
 Have all requirementsbeencapturedfrom:
● Documents?
● Architectures,models,oruse cases?
● Customerexpectations?
● Operational usage?
● All relevantstakeholders?
● Organizational policiesorstandards?
● Militarypoliciesorstandards?
● Commercial standards?
 Have the requirementsbeensuccessfullyimplementedonanyothersystemorproduct?
● If so, whatrisksand issuesemergedduringthe executionof the project?
 Are non-developmental items(NDI) beingusedonthe program?
● If so, have theirinterfacesbeenidentified,capabilitiesverified,andsupplyreliability
assured?
 Is requirementsanalysisbasedonrealisticdesignassumptions?
● Is there a designbasiswhichdrivesthe requirements?
● Is that designbasiscredible andverifiable?
 Are requirementsforthe currentdevelopmentorspiral:
● Complete (no TBDs)?
● Clear,withMeasuresof Performance andMeasuresof Effectiveness?
● Feasible?
● Testable,withtestcoverage models?
● Measurable,withunitsof measure definedforeachdeliverable?
● Understoodbyall stakeholders?
● Time-sequenced?
● Prioritized?
● Designor solutionindependent?

3 RequirementsRisks |NiwotRidge LLC
 Do the requirementsmeetthe customer'sintentforthe systemorproduct(i.e.,will itdowhat
it’ssupposedtodo)?
 Are requirementsstable?
● What requirementschange rate isacceptable for thisproject?
● Is a requirementschange control processinplace?
● How quicklyare requirementschanging?
 Can the requirementschange inresponse to:
● Newor changingmission?
● Fundingshiftorcut?
● Worldevent?
● Technologyopportunity?
● Schedule disruptions?
● Resource reduction?
 Are requirementschangesanalyzedfor:
● Impact onlowerrequirements?
● Impact onachievingprogramobjectives?
● Conflictwithprogramobjectivesorrequirements?
● Interfaceswithotherprogramsorsystems?
 Are the requirements underconfigurationcontrol?
 Are dependentrequirementsidentified?
 Doeseach requirementhave one ormore funded"parent"requirement(s)?
 Are requirementsavailable tothe programfroma single repository?
 Doesthe program have a Change Control Board (CCB):
● Establishedatthe programlevel?
● Establishedatappropriate sub-programlevels?
● Representative of all stakeholders?
● That meetsregularly?
● That is effective?
 Are requirementsconsistentwith:
● Program fundingandschedule?
● Stakeholderinvolvement?
● Technologyavailable?
● Infrastructure architecture?
 Are hardware,software andinterface constraintsidentified?
 Do the requirementsaddressthe entire lifecycle (includinglogisticsandsuitability)?

4 Schedule Risks |NiwotRidge LLC
SCH E D U LE RIS KS
 Is there sufficienttime todevelop,document,andgainapproval forprogramacquisition
strategy?
 Is there sufficienttime tocontract,develop,andtestasupportable product?
 Is schedule consideredintrade-offstudies?
 Doesthe schedule reflectrealisticacquisitionplanning?
 Are the AcquisitionPlanningBoard(APB) scheduleobjectivesrealisticandattainable?
 Are the resourcesavailable tomeetschedule?
 Doesthe schedule accommodate forrework?
 Doesthe schedule accommodate forcontingencyplanning?
 Are the schedule estimationmethodsaccurate andstandardizedwithinprogram?
 How visibleisthe programschedule todecision-makersandhigher-levelmanagement?
CO S T AN D BAS IS O F ES T IMAT E RIS KS
 Were realisticcostobjectivesestablishedearly?
 Doesthe fundingprofile matchthe acquisitionstrategy?
 Is the fundingprofilestable frombudgetcycle tobudgetcycle?
 To Reduce Total OwnershipCost(RTOC):
● Was the systembaselinedbeforecontractaward?
● Was sustainmentplanningdone upfront?
● Are cost and manpowersavingsprojectionstrackedtoplan?
● Are cost and manpowersavingsprojectionsrealized?
 Are cost-performance tradeoffsbeingdone,especiallyformarginal performance capability
improvements?
 What are the redesigncostsof:
● EngineeringChange Proposals(ecps)?
● Modificationsonce systemisdeployed?
 Are supportrequirementsbeingcostedearly?
 Doesthe systemrelysignificantlyonsoftware?
CO N T R ACT ING AN D PR O CU REME NT RIS KS
 Doesthe contract include requirementsfornecessaryengineeringandmanagementprocesses
and policies?
 Are there multiple contractorsinvolvedinthe program?
● Didanalysisdeterminewhobesttodointegration - governmentorcontractor?
● Is the Governmentresponsible forintegration?
● Is a Prime Contractorresponsibleforintegration?
● Has an integrationcontractbeenauthorized,planned,andimplemented?
 Is the contractor able to complete agreedtofunctionalitywithindefinedguidelines?
 Are there sufficientincentives?
 Is the Governmentaware of the workrequiredtocomplete the jobwithinbudgetandschedule?
 Is the Governmentmonitoringthe workperformed?

5 Funding/Financial Risks |NiwotRidge LLC
 Didanalysisdeterminethe workrequired?
 Didpast experience determine the workrequired?
 Can the GovernmentandContractor reachagreement on:
● Program requirements?
● Testresults?
● Warranty responsibility?
 Is Governmentable todiscussthe workprogramwithpeople doingthe job?
● EvenwhensubcontractedbyPrime Contractor?
 Is the subcontractmanagementevaluatedsufficiently?
 Are specificitemsthatusedtobe undermilitarystandardsidentifiedandmanaged?
 Do the Government-purchaseddatapackagesfollow contractor-uniquemanufacturing
processes?
 Are the Government-purchaseddatapackagesreproducible?
 Is reprocurementdataavailableintime forproduction?
 Do the followinghave goodrelationships:
● GovernmentandContractor?
● Contractor andIntegrator?
● Contractor andSubcontractor?
 Doesthe Contractor pro-actively:
● Identify DiminishingManufacturingSource (DMS) parts?
● Solve DiminishingManufacturingSource (DMS) issues?
 Doesthe Contractor have a good processto manage changesinthe program?
 Can the Contractor be downsizedorboughtout?
 Is systemengineeringexpertise available atthe contractorfacility?
 Are the keypersonnel citedbythe contractorin hisproposal actuallyperformingonthe
contract?
 Do the contractor personnel availableunderthe contracthave the skillsnecessarytodevelopor
integrate the system?
 Will the contractor be able to hire forthe productionrun?
 Will skilledpersonnelbe re-allocatedif contractistoosmall?
 Was the program baselinedpriortocontractaward?
FU N D IN G / FIN AN CIAL RIS KS
 Is the fundingprofilestable?
 Is the fundingprofileallocatedadequatelyforthe programschedule?
● Are RDT&E fundsearlyand/orinadequate?
● Are productionfundsearly,late,and/orinadequate?
● Doesfundingtimingconsiderlongleaditems?
 Is the fundingunderthe control of the program manager?
 Is the fundingforthe programin contentionwithotherprograms?
 Are fundsreprogrammedperiodicallybyyears?
 Are fundsreprogrammedperiodicallybyappropriations?
 Doesthe fundingprofile allowforareasonable programplan?

6 ManagementandLeadershipRisks |NiwotRidge LLC
 Is the fundingsufficientforrealizationof the requirements?
 Doesfundingconsiderlicensingfees?
MAN AG E ME NT AN D LE ADE RS HIP RIS KS
 Doesthe program have documentedmanagementprocessesorcontrols?
 Doesthe program managerhave managementandleadershipexperience?
 Doesthe program managerhave managementandleadershiptraining?
 Is the program managerpositionchangingfrequently?
 Are program budget,cost,and/orschedule fixedforreasonable durations?
 Are program budget,cost,and/orschedule political issues?
 Are parallel orevolutionarydevelopmentshandledeffectively?
 Is the program managementcentralized(single locationforPMand PCO)?
 Is the program planfeasible?
 Is the program managerable tomeetwithseniordecision-makersforprogramdecisionswhen
needed?
 Doesthe program managerunderstandthe prioritiesof the stakeholders?
 Are the administrative reportingrequirementsreasonable?
 Are the resourcesassignedtothe programoffice sufficienttohandle the programworkload?
 Are the governmentandsupportcontractor resourcesassignedtothe programsufficientto
handle the programworkload?
 Do requestsforadditional informationrequire additionalfunding?
 Are all stakeholdersknown?
 Are otherprograms evaluatingthisprogramforpossibledevelopmentopportunities?
 Is the program prioritysufficienttogetnecessarypersonnel,equipment,andfacilities?
 Is the propermix (experience,skills,stability) of people assignedtothe programor contractor
team?
 Are effective riskassessmentsperformed?
● Are the resultsunderstood?
● Are the resultsactedupon?
 Doesthe program managementteamhave acommitmenttodeliveringaqualityproduct?

7 SystemsEngineeringRisks |NiwotRidge LLC
SYS T E MS EN G INE ERIN G RIS KS
 Are the designimplicationssufficientlyconsideredinconceptexploration?
 Is conceptmature enoughfordevelopmenttobegin?
● If not, have trade studiesbeendone toclarifycritical components?
● Didtrade studiesincludeproductionrisk?
 Will the systemsatisfyuserrequirements?
 Is the designcosteffective?
 Doesthe designrelyonnewor untriedtechnologyorexoticmaterialstoachieve performance
objectives?
 Will still maturingorunproventechnologiesbe adequatelydevelopedbefore itsneeded
capabilities?
● Is a TechnologyReadinessLevel (TRL) usedtoassessthe maturityof technologies?
● Has the risk impactfor eachTRL level beencapturedinthe RiskManagementPlan(RMP)?
 Is productionfundingavailable atthe needed time inthe developmenteffort?
 Has the standard operatingenvironment (SOE) beenestablished?
 What engineeringprocessesare beingusedonthe program?
 Is the systemdesignfault-tolerantinawayneededforproperfunctioning?
 What isthe growth/expandabilityrange of the systemindevelopment?
 Doesthe developmentalignwiththe operational concept?
 How closelydoesthe designenvironmentmatchthe actual operational environment?
 Is the systembeingbenchmarkedatappropriate milestones?
 Who has configurationcontrol?
 Are interfacingsystemsbeingdevelopedinparallel?
 Are reliability,maintainability,availabilityrequirementsbeingmet?
 Are the technical,operational andprogrammatic requirementsstable?
 Are stressand strength/stressanalysesperformedtoensure thatappliedvaluesinderatingand
safetyforcomponentpartsand materialsmeetcriteria?
 Are “worst case”tolerance analysesperformedtoensure thatsystemperformance remains
withinspecifiedlimits?
 Doesanalysisresultinappropriate designrevisionstoreduce risk?
 Are parts and materialstestedearlyinthe designatintendedoperational stresslevels?

8 Facilities |NiwotRidge LLC
FACIL IT IE S
 Were productionimplicationsconsideredduringconceptexploration?
 Was productionconsideredsufficientlyindesign?
 Do program plansinclude vendorsupport?
 Do program plansinclude longleaditems?
 Do program plansaddressthe knownvariability’sof costand schedule?
 Are the productionprocessesproven?
 Are sufficient,cost-effective facilitiesavailableforproduction?
 Is the infrastructure provided(e.g.,office space,facilities,supplies,etc.) sufficientforprogram
needs?
 What isthe impactto the program of changesin infrastructure availabilityorperformance?
 Doesthe program needCapital Equipment?
 Is the capital equipmentprovidedcorrectandsufficientforprogramneeds?
 What isthe impactto the program of changesin capital equipmentavailabilityorperformance?
 Doescontract offeranyincentive tomodernizefacilitiesorreduce cost?
 Do buildingshave appropriate storage forhazardousmaterialsandappropriate ventingfortoxic
or asphyxiatinggases?
 Doesmachineryandequipmenthave requiredsafetydevices?
 Do noise levelsincreasethe probabilityof mishapoccurrence?
 Whenpotential forinjuryfromchemicalsexists,are appropriate antidotesorfirstaidavailable?
 Is the needforeye washand washdownfacilitiesassessed?
 On occasion,whentemporaryfacilitiesorconstructionare necessaryforcertainoperations,do
these facilitiespresentsignificanthazards?
 Are buildingshousinghazardousactivitydesignedtobe compatiblewiththe enclosed
operation?
 Are buildingshousinglasersorotherelectromagneticradiatingdevicesdesignedtominimize
hazardsand provide controlledaccess?
 Doesthe designminimize the effectsof anyhazardousactivitysuchasfire,explosion,toxicity,
radiation,andasphyxiation?
 Can visual andaural warningsand alarmsbe readilyseenandheard?
 Doesthe buildingdesignfurtherfacilitate the rapidevacuationof occupants?
 Are fire extinguishingagentsreadilyaccessibleandeffective,butbythemselvesdonotpresenta
significanthazard topersonnel?

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