Identifying Risk and Risk Treatment Plan

By Bruce Gonzalez,2014-07-01 22:46
13 views 0
Identifying Risk and Risk Treatment Plan

Identifying Risk and Risk Treatment Plan


     Submit Risk Assess Risk Evaluate Risk Complete Risk Mitigate Risk

    Risk Management Execution Process Steps

Example of Risk Treatment Plan

    Risk Treatment Plan

ACCEPTANCE This technique recognizes the risk and its uncontrollability. Acceptance is a “passive”

    technique that focuses on allowing whatever outcome to occur without trying to prevent that

    outcome. This technique is normally used for “low” or “very low” risks where a scope

    efficient means of reducing the risk is not apparent.

    AVOIDANCE This technique uses an approach that avoids the possibility of risk occurrence. Avoidance

    can be thought of as nullifying the risk by changing the contract parameters established

    between the Customer and Integrator. The following items represent ways of avoiding risks:

    1. Work Scope Reduction

    2. Changing the requirements and/or specifications

    3. Changing the Statement of Work (SOW)

    4. Changing the Technical Baseline

    5. Developing and submitting Waivers and Deviations

    CONTROL This technique is made up of actions that are to be taken that reduce the risk likelihood or

    impact. Control-based actions occur at all points throughout the program's lifecycle and are

    typically the most common response. They typically identify an action or product that

    becomes part of the work plans, and which are monitored and reported as par of the regular

    performance analysis and progress reporting of the Program.

    INVESTIGATION This technique defers all actions until more work is done and/or facts are known.

    Investigation-based responses do not define any mitigation for reducing an individual risk.

    They are responses to risks where no clear solution is identified, and further research is

    required. Investigation may include root cause analysis. Investigative responses

    immediately and directly lead to a greater aggregated Program risk. This is because the

    probability quantifier for each risk includes the effect of the applied response, for which

    there is none, and the level of control quantifier indicates the level of influence to apply that

    response, which is low.

    REDUCTION Reduction is the active lowering of risk by a planned series of activities. Techniques

    ; Simulation include: ; Advance design models ; Rapid Prototyping ; Modeling ; Reduce Dependencies ; Early multi-discipline involvement ; Trade Studies ; Customer involvement ; Consultant and/or specialist ; Team Workshops ; Joint Applications development groups reviews

    TRANSFERENCE Transference is the process of moving something from one place to another or from one

    party to another. In this, the risk can be transferred to the customer or to the contractor.

    Typically, transference includes the sub-contracting to specialist suppliers who are able to

    reduce the overall risk exposure. This technique is best utilized during the proposal process.

    Transfer can also include the use of third party guaranties, such as insurance backed

performance bonds.

Report this document

For any questions or suggestions please email