Project Risk Management Slides

• The first slide, Project Risk Definitions, is a reference intended toprovide instructions and definitions related to risk management. Theslide is based on a risk assessment of the NASA SOFIA aircraft. Thisslide will help your team define and evaluate your risks.

• The second slide, Example Project Risk Management Matrix, is anexample of what your team should create and submit as item IX in thePRR/PDR document.

NASA Systems Engineering Award 2008 SAE Aero Design Competition

Project Risk DefinitionsDEFINITIONS:RISK MANAGEMENT: An organized, systematic decision-making process thatefficiently identifies risks, assesses or analyzes risks, and effectively reduces oreliminates risks to achieving program goals.RISK: A Program “Risk” is any circumstance or situation that poses a threat to:crew or observatory safety, Program controlled cost, Program controlledschedule, or major mission objectives, and for which an acceptable resolution isdeemed unlikely without a focused management effort.

Consequences

NOTE: Technical includes everything that is not cost and schedule: e.g., safety, operations, quality of science, programmatic, etc.

Team BudgetIncrease>15%

Technical Minimal or NoImpact

Schedule Minimal orNo Impact

Cost Minimal orno Impact

Given the event occurs, what is the magnitude of the impact to the SOFIA Program? . . .

Mod. Reduction,Same ApproachRetained

Mod. Reduction,But WorkaroundsAvailable

Major Reduction, ButWorkarounds Available

Unacceptable, NoAlternatives Exist

Cannot AchieveMajor ProgramMilestone

Level 2 Milestone Slip of >1Month, or Program CriticalPath Impacted

Level 2 Milestone Slipof < 1 Month.

Additional ActivitiesRequired. Able toMeet Need Dates

Individual System BudgetIncrease of >10% orProgram Budget Increaseof >5%

Individual System BudgetIncrease between 5%-10%or Program BudgetIncrease of >2%

Individual SystemBudget Increaseof <5%

Level 1 2 3 4 5

Individual System BudgetIncrease of >15% orProgram Budget Increaseof >10%

SOFIA Risk Matrix

CONSEQUENCES (SEVERITY)

PROBABILITY

5

4

3

2

1

1 2 3 4 5

LEGEND

High -

Med -

Low -

Implement newprocess(es) or changebaseline plan(s)

Aggressively manage;consider alternativeprocess

Monitor

PROBABILITY

What is the likelihood the situation or circumstance will happen?

. . . or—the current process . . . Level

5

4

3

2

1

Probability

Near Certain80–100%

cannot prevent this event, no alternateapproaches or processes are available.

Highly Likely60–80%

cannot prevent this event, but a differentapproach or process might.

Likely40–60%

may prevent this event, but additionalactions will be required.

Low Likelihood20–40%

is usually sufficient to prevent this typeof event.

Not Likely0–20% is sufficient to prevent this event.

Probability(Safety)

Likely to occurimmediately(X > 10-1 )

May occurin time

(10-2> X > 10-3 )

Probably willoccur in time

(10-1> X > 10-2 )

Unlikely tooccur

(10-3> X > 10-6 )

Improbable tooccur (10-6> X)

NASA Systems Engineering Award 2008 SAE Aero Design Competition

ApproachM - MitigateW - WatchA - AcceptR - Research

5

4

3

2

1

1 2 3 4 5

LIKELIHOOD

CONSEQUENCES

MedHigh

Low

Criticality L x C TrendDecreasing (Improving)Increasing (Worsening)UnchangedNew Since Last Period

More flight testing may berequired for Soft V&V

RDFRC-028

Limited Flight Envelope, dueto technical issues

RDFRC-047

Payload Capacity & VolumeTrade-offs design issues

RDFRC-116

Avionics software behindschedule

WDFRC-015

Quality Control Resourcesinsufficient

ADFRC-244

Cost growth for enginecomponents

WDFRC-073

Sched Integration problemsstructure vs. avionics

MDFRC-122

Landing Gear Door SystemFailure

RDFRC-341Risk Title

Approach

RiskID

Rank &Trend

1

2

3

456

78

Example Project Risk Management MatrixNASA Systems Engineering Award 2008 SAE Aero Design Competition