RISK MANAGEMENT and RM Tools INCOSE – Newport News, VA Chapter 2 May 2007

RISK MANAGEMENT 2 May 2007

Risk Management Focus PM / project risk Operational Risk Mgt ORM R&E Technical Risk (Grounding Bulletins) NAVAIRINST 5100.11A R&E Tech 2 May 2007

Why Risk Management? Cost Schedule Technical Performance 2 May 2007

Comprehensive Risk Management Planning and Organizing Process RMP Risk Mgt Plan Risk Board Policy and Guidance Tools & Training Integrated and Stand-Alone Risk Mgt Tools NAVAIR Class Desk training DAU NAVAIRINST 5000.21A RM Guide for DoD Acquisition RMP and RMB are required components of NAVAIR Risk mgt process RMP – defines team processes, roles and responsibilities RMB – assigns people to RMP roles Risk Management Guide for DoD Acquisition 2006, 6th Edition, August 2006 2 May 2007

Evolution of Risk Management 21th Century Risk Mgt Ancient – project plan included extra stones 20th Century – Excel spreadsheet emphasis on tracking (current snapshot looking backward, manually intensive), Spreadsheet keeper still an “Army of One” 21st century – automated tools – mitigation planning (forward looking), work flow tracking, team collaboration, multiple simultaneous entry [eventually integrated in tool suite with Requirements, architecture products, designs and test plans] 20th Century Risk Mgt Ancient Risk Management 2 May 2007

RISK TOOLS 2 May 2007

Consequence vs. Likelihood Mnemonics 2 May 2007

Risk Project Summary Home Page 2 May 2007

Risk Item Description Increasing emphasis placed on Causal factors 2 May 2007

Initial Risk Assessment 2 May 2007

Risk Mitigation Plans 2 May 2007

View Risk Details 2 May 2007

Risk Summary Reports 2 May 2007

Risk Reports by Team or Category 2 May 2007

Risk Tool Benefits Risk Item database provides single source for risk item workflow tracking Enable 1 or more mitigation strategy plan and implementation tracking Facilitate Risk Board Review Reports Standardized Ad Hoc 2 May 2007

Risk Board Reports – Watch List 2 May 2007

Risk Board Reports – No Mitigation Plan 2 May 2007

Benefits of RiskExchange Implementation of RiskExchange in PMA has provided several benefits in the Risk Management Program Consistent data and severity analysis across the PMA Improved configuration management of risk reporting Centralized database for risk management information Provides better accessibility to data Reporting and search tools Fosters cross IPT communication Web-based application is easy to deploy Access on or off-base Little to no training required John Kovach, Northrop Grumman NAVAIR PMA Support 2 May 2007

Conclusions Risk Management makes good business sense Any tool is better than no tool SERC and NSERC provide turn-key access to web-based Risk Management Tools with database administration support and training 2 May 2007

Law of Unanticipated Consequences Gore’s Law 2 May 2007

Director of Aviation Programs Questions? Linkage between program requirements and risk management can help avoid unintended end results! Scott McLellan Director of Aviation Programs smclellan@sac-corp.com 301-233-3300 2 May 2007