Identifying Risk and Risk Treatment Plan
ASSESSMENT MITIGATION MANAGEMENT IDENTIFICATION
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