IT Strategy plan

Managing Capital Investments at the Indian Health Service

A “How-To” Guide to Risk Management

February 2013

Office of Information Technology (OIT) Division of Information Resource Management

Albuquerque, New Mexico

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A C K N OW L E D G E M E N T

The Indian Health Service gratefully acknowledges the assistance of the National

Institutes of Health, Office of the Deputy Chief Information Officer, in the

preparation of this document.

ii

Document Change History

Version Number Release Date Summary of Changes

1.0 July 14, 2006 Initial release

2.0 February 14, 2013 Updated document to be consistent with the Department of Health and Human Services Project and Portfolio Management tool and added questions to assist in the risk assessment.

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Contents

PURPOSE .................................................................................................................... 1

THE BASICS ................................................................................................................. 2

What Is Risk? ....................................................................................................... 2

What Is Risk Management?.................................................................................. 2

How Do You Manage Risk?.................................................................................. 3

DRAFT A RISK MANAGEMENT PLAN ................................................................................ 3

ASSESS YOUR RISK...................................................................................................... 4

TRACK AND REPORT PROGRESS.................................................................................... 7

Executing Risk Management Activities................................................................. 7

Reporting Risk Management Progress................................................................. 7

Reevaluating Project Risk .................................................................................... 8

Conducting Lessons Learned Sessions ............................................................... 8

Documenting Lessons Learned Activities............................................................. 9

RISK MANAGEMENT ROLES AND RESPONSIBILITIES ......................................................... 9

APPENDIX A. RISK MANAGEMENT PLAN TEMPLATE ......................................................A-1

APPENDIX B. CONDUCTING AN OPEN AND COMPREHENSIVE RISK REVIEW ....................B-1

APPENDIX C. SAMPLE RISK INVENTORY AND ASSESSMENT .......................................... C-1

Figures

Figure 1. Overview of Risk Management ................................................................... 2

Figure 2. The Risk Management Process.................................................................. 4

1

A “How-To” Guide to Risk Management

PURPOSE

This guide is intended to be used by project managers and project team members

to manage the risks associated with their projects. 1 The purpose of this guide is to

provide a basic, easy, step-wise method for managing the risks associated with a

project; a method that is consistent with federal and Indian Health Service (IHS)

requirements. A Guide to the Project Management Body of Knowledge (PMBOK

Guide), ANSI/PMI 99-001-2008 published by the Project Management Institute

can provide a more comprehensive reference guide.

All information technology projects have risk. Risk management provides a

means to identify the potential problems before they occur. Activities addressing

these problems are planned and executed, as needed, across the life of the project

to mitigate adverse impacts on achieving the project’s objectives. The purpose of

Risk Management is to proactively identify and manage potential problems that

may occur during a project’s implementation lifecycle. Risk management is a

continuous process that will occur throughout the project lifecycle. Effective risk

management includes early and aggressive risk identification through the

collaboration of relevant project stakeholders.

The output of this process is a risk management approach to be used as part of the

overall project management process.

This process describes the following four activities and the steps involved in these

activities:

Identify and analyze risks early and determine their relative importance.

Provide a tracking system to document, monitor, and update risks

systematically.

Manage risks by handling them appropriately.

Make timely and appropriate decisions based on risk assessment and

monitoring.

This guide first presents the basics of risk management, defining the terms and

then providing a step-by-step approach to managing risks, following the steps

shown in Figure 1.

1 OMB uses the term “investment” to incorporate the projects, programs, systems, etc., that

fall under the purview of the Capital Planning and Investment Control (CPIC) process. Because

this guide supports the CPIC process, in this document, this document uses the term “project” to

be synonymous with the term “investment.”

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Figure 1. Overview of Risk Management

Appendix A contains a template for a draft risk management plan. Appendix B

tells how to conduct a comprehensive risk review and Appendix C contains an

example of a comprehensive risk review.

THE BASICS

What Is Risk?

A risk is an uncertain event or condition that, if it occurs, has a positive or

negative effect on a project objective, such as time, cost, scope, or quality. A risk

may have one or more causes and one or more impacts. 2 For reasons of

simplicity, we are only considering risks with negative outcomes. A risk is any

factor that has the potential to interfere with the successful completion of the

project. Risks are not events that have already occurred, but events that might

occur and that have the potential to adversely impact the project in some way..

What Is Risk Management?

Risk management is an organized method of identifying, prioritizing, and

measuring the impact of project risks and developing, selecting, and managing

options for handling those risks—not necessarily to eliminate them entirely, but to

minimize their impact on the project.

Managing project risk is a key component of good project management. Risks

that are managed are minimized. Understanding and communicating risks help

manage the expectations of senior management and other stakeholders. One such

stakeholder, the Office of Management and Budget (OMB), requires a formal risk

management plan for major projects and has in the past required annual reporting

of risks and risk mitigation progress before approving requested project funding. 3

2 A Guide to the Project Management Body of Knowledge, Fourth Edition (PMBOK Guide),

ANSI/PMI 99-001-2008, Project Management Institute, Inc, Newton Square, PA, 2008. 3

OMB does not specify a risk management plan format or content, but the previous reporting

requirements of the Exhibit 300 imply obvious plan elements. These elements are also selection

elements in the ProSight tool.

Step 1: Draft a Risk

Management Plan

See Appendix A

Step 2: Assess

Your Risk

See Appendices B & C

Step 3: Track and

Report Progress

See Appendix D

Step 1: Draft a Risk

Management Plan

See Appendix A

Step 2: Assess

Your Risk

See Appendices B & C

Step 3: Track and

Report Progress

See Appendix D

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How Do You Manage Risk?

The appropriate level of risk management for any project depends on many

factors (e.g., size, complexity, life-cycle phase, and stability) and determining that

level requires candid management judgment. For example, a stable,

straightforward application using established technology in the maintenance phase

of its life cycle needs a far less extensive risk management program than a large,

complex agency-wide system just beginning the development phase.

No one risk management approach is appropriate for all projects. Managers of

smaller projects can profitably use elements of these risk management guidelines

without the administrative burden of reporting risks to OMB. Those subject to

OMB or HHS oversight must satisfy OMB requirements; risk status and

mitigation must be well documented to be assured that the project manager is

managing risks sufficiently well that project success is probable.

DRAFT A RISK MANAGEMENT PLAN

The risk management planning process begins

with the selection of a risk management

process model. One such model is shown in

Figure 2. The risk management process model

in Figure 2 is straightforward, and its

elements are readily adaptable to the range of projects at IHS. The first four

activities of the risk management process model depicted in the figure, designated

as the planning phase and presented in the top row, specify the actions required to

complete Step 2 of Figure 1, Assess Your Risk. The last three activities of the risk

management process model, designated as the execution phase and presented in

the bottom row of the figure, specify the actions required to complete Step 3 of

Figure 1, Track and Report Progress.

To draft a plan for your project, you will have to consider what level of detail is

required to identify risks, what methods are appropriate for evaluating the risks,

who will be responsible for developing strategies to manage the risks, and how

risk management actions will be developed, monitored, and reported. The level of

funding, impact, or complexity of a project will determine how fully and detailed

the risks are identified, managed, and tracked.

When completed, the risk management plan for your project should be dated and

published. It should be made available to all project personnel, oversight and audit

personnel, project sponsors, and other interested stakeholders.

A template for a risk management plan is presented in Appendix A.

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Step 2: Assess

Your Risk

See Appendices B & C

Step 2: Assess

Your Risk

See Appendices B & C

Figure 2. The Risk Management Process

ASSESS YOUR RISK

The planning phase of the risk management

process model provides an assessment of

project risks, including understanding the

nature, likelihood, and potential impact of

risk. It has four discrete elements:

Identify risks. The risks inherent in your project should be defined in two

ways: (1) they should be part of a continuous, ongoing part of project

management so that risks are managed as risks arise; and (2) there should

be a periodic, independent, comprehensive assessment of potential risks to

assure that potential new risks are fully identified and managed.

As discussed in Appendix B, OMB has identified 19 risk categories, that

provide a minimum set of risk areas to be considered by the project risk

assessment team:

1) Schedule

2) Initial cost

3) Life-cycle cost

4) Technical obsolescence

5) Feasibility

6) Reliability of systems

7) Dependencies and interoperability

8) Surety (asset protections)

9) Risk of creating a monopoly

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10) Capability of agency to manage the investment

11) Overall risk of investment failure

12) Organizational and change management

13) Business

14) Data/information

15) Technology

16) Strategic

17) Security

18) Privacy

19) Project resources

Evaluate risks. Once the risks have been identified, the Project Team will

analyze those risks by determining how they might impede the overall

success of the project if they occur. Each risk should be rated in terms of

(1) the likelihood that the risk will occur and (2) its potential impact on the

project if it does occur. This rating can be expressed as high, medium, or

low for both probability of occurrence and for the potential impact. Then,

a level of magnitude can be computed by assigning a numerical score to

each risk by multiplying the numerical score of the risk’s likelihood of

occurrence by its potential impact score. By formally evaluating the risks

in this way, the project team can determine how each risk should be

managed, depending on its magnitude. Risks with a high magnitude

should receive greater management attention than those with a low

magnitude.

Risks with a high magnitude represent those risks that are deemed to pose

the greatest threat to program success and accomplishment, i.e., the high-

risk items. These items are typically reviewed at all internal program

status reviews. Once a high magnitude risk is sufficiently mitigated that it

can be closed out, it is reduced in priority and moved to an appropriate

spot on the watch list. Caution must be exercised when closing out any

risk from the high magnitude list. Closure does not mean file and forget. A

closed risk may resurface and should continue to be observed, tracked, and

documented.

After quantifying each high magnitude risk, the risks should be prioritized

from the most to least important. This allows the team to focus on the

most important risks first.

The Risk Assessment process should begin with the project team;

however, all project stakeholders should have input. During regularly

scheduled risk reviews, the project team will reassess risks previously

identified, as well as newly identified risks.

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Develop risk management strategy. The most appropriate strategy for

managing each risk should be determined. If a negative risk can be

avoided (e.g., changing the project plan), if it is transferred (e.g., through

the use of a firm fixed-price contract), or if it is accepted (e.g., there is no

other suitable response strategy), it need no longer be part of the on-going

risk management strategy, although it should be identified and the action

taken on documented. The remaining risk management strategy for a

negative risk should be to develop a mitigation strategy, which is what you

do to try to keep the risk from occurring in the first place. For a positive

risk (i.e., an opportunity), the risk management strategy may include

exploiting it by insuring that the opportunity will definitely happen;

sharing or transferring it to another organization that can best take

advantage of it; or enhancing it or increasing the probability of the

opportunity occurring. Regardless of whether the risk is positive or

negative, if it is of medium or of high magnitude, you should also develop

a risk management strategy or contingency plan, which is what you plan to

do if the risk occurs.

The risk management strategy is expressed in a short statement that

describes the approach to managing the risk. For a risk with a high

magnitude, a specific risk owner may be assigned to manage the risk and

its mitigation activities. For negative risks that cannot be mitigated or

which are too expensive to mitigate, a risk response or contingency plan

should be developed and documented in the risk log. The risk management

strategy, along with any related work, e.g., controls, should be agreed to

via consensus techniques.

Acceptable risk management options are:

Accept – Accept the risk when there are no viable options to mitigate

or avoid the risk, or where the management or avoidance of the risk is

not economically practical. In situations where nothing can

realistically be done to prevent a risk from happening, the project risks

should have a higher degree of scrutiny so that the probability or

impact of occurrence is minimized. The Project Sponsor will formally

accept the potential impact of this risk on the project. There may be

contingency plans or reserves developed for these types of risks. A

contingency plan is a pre-defined action that can be implemented in

the event that a previously identified risk occurs, in order to diminish

impact on the project (i.e., “What should the team do if…?”).

Manage - Reduce the expected impact associated with the risk through

mitigation and contingency techniques. Mitigation is a preventative

action, e.g., controls, that are performed to reduce the probability of

the occurrence, increase the visibility of the risk, or reduce the

seriousness of the impact should the risk occur (i.e., “What should the

team do now to minimize or prevent the risk and to minimize its

impact?”). There is usually a cost associated with a risk mitigation

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Step 3: Track and

Report Progress

See Appendix D

Step 3: Track and

Report Progress

See Appendix D

approach. The estimated cost of such mitigation should be identified

and documented in the Risk Log. Contingency outlines a “plan of

action” to take if the risk occurs and becomes an event to be dealt

with.

Avoid - Eliminate the impact of the risk upon the project by formally

transferring this risk to another party. This is usually accomplished

through some form of contractual agreement.

Identify risk management activities. The project manager, or risk owner if

one is assigned, should develop an approach and action plan to implement

the risk management strategy.

A guide for conducting an open and comprehensive risk review is presented in

Appendix B and an example of a comprehensive Risk Log is contained in

Appendix C.

TRACK AND REPORT PROGRESS

The execution phase of the risk management

process model provides a periodic review of the

status of risk management activities. Tracking

and reporting progress on the actions taken to

manage the risks include both monitoring the

progress toward mitigating the risk and periodically reassessing risk..

Executing Risk Management Activities

Overall execution of the risk management strategy and the corresponding

management activities is managed by the risk owner. Risk management status is

tracked against the planned risk management activities developed for each risk.

HHS uses a commercial software package, currently Primavera ProSight, as its

portfolio management tool (PMT) to track information technology investments

that are subject to HHS review. The PMT provides forms to use for reporting

project risks, their levels of magnitude, and their risk management strategies.

Reporting Risk Management Progress

Risk owners regularly report on their progress in implementing the risk

management strategies and the current status of the risk management activities.

These reports are presented to the other members of the project team at a level of

detail commensurate with the risk magnitude and in the format prescribed by the

project manager.

Progress may also be reported regularly to senior management outside the project

team if appropriate.

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Examples of reporting measures to be used can include:

Number of risks identified, managed, tracked, and controlled.

Monitoring the indicators that will trigger thresholds.

Risk exposure and changes to the risk exposure for each assessed risk (as a

summary percentage of management reserve).

Change activity for the risk (e.g., processes, schedule, funding).

Occurrence of unanticipated risks.

Risk categorization volatility.

Comparison of estimated versus actual risk management effort and impact.

Earned value management metrics can be used as “risk triggers” to predict when

cost and schedule risks are likely to occur or whether they are sufficiently under

control. Most projects are required to use earned-value management to track and

report on cost and schedule performance. HHS has developed a three-tiered

definition of projects that are required to report cost and schedule variances.

Reevaluating Project Risk

A comprehensive review and assessment should occur frequently, as determined

by the Project Manager, but at least once per year. Reviews can be timed to

provide current comprehensive information to assist the project manager with

preparing reports, and as a minimum, for the annual IHS or HHS business case

review and prioritization process.

During the reevaluation process, it may be determined that some risks that were

identified in past evaluations, or as part of the ongoing risk identification process,

have been successfully mitigated. These risks should still be listed on the risk

inventory with an annotation that no action is necessary, the risk has been

successfully mitigated. This will demonstrate that the risk was identified and

managed at some time as part of the risk identification and assessment process.

Conducting Lessons Learned Sessions

The lessons learned activity involves determining the causes of variances in

performance, the reason behind corrective actions chosen, and project activities

that worked well and those that did not. Lessons learned should be documented as

part of the historical record for the current project and as a “best practice”

reference for future projects. The lessons learned review should be conducted

following completion of each major lifecycle phase. At a minimum, projects

perform a lessons learned review at the end of each phase and at project

completion.

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A lesson learned session serves as a valuable phase closure activity. The session

provides an opportunity for public praise and recognition for project team

members, allows the team to acknowledge what worked well, and offers an

opportunity to discuss ways to improve processes and procedures.

Participants of a lessons learned session are typically the Project Manager and

project team. It may also include the customer and/or external stakeholders as

appropriate. Some typical questions to answer include the following:

In this process or sub process, what did we do well? What could we have

changed?

Did the delivered product meet the specified requirements and goals of the

project?

Was the customer satisfied with the end product?

Did the project stay within scope?

Were cost budgets met?

Was the schedule met?

Were risks identified and mitigated?

Were problems or issues resolved timely and adequately?

Did all of the components of the project management methodology work?

If not, which ones did not, and why?

What could be done to improve the process?

Documenting Lessons Learned Activities

Lessons learned are captured and documented to be housed with other project

files and closure documentation. At a minimum, projects should perform a lessons

learned review at the end of each major lifecycle phase and at project completion.

RISK MANAGEMENT ROLES AND RESPONSIBILITIES

The project manager is responsible for overseeing, monitoring, and assigning all

risk management activities, among other project management responsibilities.

The risk owner is responsible for overall execution of the risk management

strategy and the corresponding risk management activities, including the

following:

Proposing a strategy for mitigating the assigned risk and getting the

strategy approved by the project team and project manager.

Developing an approach and action plan to execute the management

strategy.

Tracking and reporting on the progress in mitigating the risk.

A-1

APPENDIX A. RISK MANAGEMENT PLAN TEMPLATE

This appendix contains an annotated outline of a risk management plan adaptable

to individual projects. 4 Use the outline headings for your risk management plan

and follow the guidance under the headings:

Red italicized text describes what should be in each section of the risk

management plan.

Black text may be used in your plan as is, or with minor modification.

Blue underlined text indicates that you “fill in the blank.”

4 Risks should be managed for all projects, regardless of size, and the processes for doing so

should be documented. Smaller projects may require a lesser degree of risk management than do

larger projects.

Project Name

Risk Management Plan

Version 1.0 DATE

Organizational Unit

Location

ii

UPDATE HISTORY

Version Date Nature of Change Comment

1.0 Date Initial Draft

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TABLE OF CONTENTS

I. Purpose 1

II. Background 1

A. Organizational Mission 2

B. Project Description 2

III. The Project Name Risk Management Process 2

A. Planning Phase 3

B. Execution Phase 10

IV. Risk Management Roles and Responsibilities 12

A. Project Manager 13

B. Risk Owner 13

1

I. PURPOSE

To introduce the plan, provide a short statement of the purpose, such as the

following:

The purpose of this risk management plan is to provide a framework for

managing the risks that could hinder the success of Project Name. This risk

management plan provides guidelines for identifying, analyzing, documenting,

mitigating, and monitoring events that might adversely affect the project.

Specifically, this plan provides procedures that

serve as a basis for identifying, documenting, analyzing, and prioritizing

risks associated with the project and for developing management strategies

to handle those risks, and

enable Indian Health Service (IHS), Area Office, and Organization Unit

executives and the project team to monitor the health of the project

throughout its life cycle.

All information technology projects have risk. Risk management provides a

means to identify the potential problems before they occur. Activities addressing

these problems are planned and executed, as needed, across the life of the project

to mitigate adverse impacts on achieving the project’s objectives. To ensure the

lowest possible risk in the performance of project efforts, the established goals for

this Risk Management Plan are to:

Identify and analyze risks early and determine their relative importance.

Provide a tracking system to document, monitor, and update risks

systematically.

Manage risks, if necessary, by handling them appropriately.

Make timely and appropriate decisions based on risk assessment and

monitoring.

II. BACKGROUND

If the risk management plan is a component of the project management plan, this

section may be omitted as it is superfluous. If the risk management plan is a

stand-alone document, include a Background Section to place the plan in its

context.

2

A. Organizational Mission

In this section, describe the mission of the organization or operating unit. The

mission of the organization or operating unit can probably be extracted from the

IHS website and should be edited to focus on that part of the mission that is most

relevant to the project’s scope and objectives. The description of the mission

should be no more than one page.

The Indian Health Service (IHS), an agency within the Department of Health and

Human Services, is responsible for providing federal health services to American

Indians and Alaska Natives. The provision of health services to members of

federally-recognized tribes grew out of the special government-to-government

relationship between the federal government and Indian tribes. This relationship,

established in 1787, is based on Article I, Section 8 of the Constitution, and has

been given form and substance by numerous treaties, laws, Supreme Court

decisions, and Executive Orders. The IHS is the principal federal health care

provider and health advocate for Indian people and its goal is to assure that

comprehensive, culturally acceptable personal and public health services are

available and accessible to American Indian and Alaska Native people The IHS

currently provides health services to approximately 2 million American Indians

and Alaska Natives who belong to more than 566 federally recognized tribes in 35

states.

Describe the mission of the organizational unit that is or will be using the system.

This description should put the system in its proper context and should be about

one page.

B. Project Name Description

Describe the project’s purpose, history, scope, concept of operations, future

plans, and life-cycle phase. This should be about one or two pages.

III. THE PROJECT NAME RISK MANAGEMENT

PROCESS

Select a risk management model to be followed. Several are available, including

one from the Software Engineering Institute of Carnegie Mellon University.

Describe the model and show it graphically.

Figure 1 depicts the process used to manage risks associated with Project Name.

As the figure shows, the process has two phases: a planning phase, and an

execution phase. Risk management activities are conducted in an overall

atmosphere of regular and open communication within the project team and

among stakeholders and users.

3

Figure 1. Project Name Risk Management Process

Regular and Open Communication Regular and Open Communication

Planning

Phase

Execution

Phase

Identify

Risks

Identify Risk

Management

Activities

Develop Risk

Management

Strategy

Evaluate

Risks

Execute Risk

Management

Activities

Track and

Report on

Progress

Review and Reevaluate

Risks Periodically

A. Planning Phase

The planning phase of the risk management process has four steps:

Identify risks

Evaluate risks

Develop risk management strategy

Identify risk management activities

Figure 2 highlights the four steps in the planning phase.

4

Figure 2. Project Name Risk Management Process—Planning Phase

Planning

Phase

Step 1

Identify

Risks

Step 4

Identify Risk

Management

Activities

Step 3

Develop Risk

Management

Strategy

Step 2

Evaluate

Risks

Execute Risk

Management

Activities

Track and

Report on

Progress

Review and Reevaluate

Risks Periodically

1. IDENTIFY RISKS

Define risks and describe the process for identifying risks. The following is an

example.

Risk identification involves recognizing the critical events that, if they occurred,

would prevent the project from achieving its objectives. These events may be

related to technological or process uncertainty, cultural resistance to change, lack

of progress, failure to achieve critical metrics, or many other factors.

The first step in preparing for risk management is to determine risk sources and

categories. Sources are both internal and external to the project. Internal risks are

assumed to be capable of being mitigated by the project manager and team.

External risks are usually assumed to be outside the control of the project

manager and team and will usually need to be elevated to a higher level of

management for action or a contingency plan may need to be developed in the

event the risk occurs. Due to the dynamic nature of most projects, risk sources can

change over the life of the project and will need to be reviewed periodically.

One key factor in recognizing and communicating risk is to state it properly. Best

practice is to define specific risks in cause-and-effect statements. State your intent

to do so and give a few examples of risk statements that are relevant to the project

and its current life-cycle phase. Here are two examples:

“If data supporting the legacy system are not accurate and

complete, then successful transition to the new system will be

jeopardized. “

“If the acquisition process does not include detailed selection

criteria and an evaluation plan, then the selection may not be the

‘best value’ for IHS, and it will not be legally defensible. “

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Describe both continuous and periodic, comprehensive processes for identifying

risks. First, introduce the subject.

Throughout the project’s life cycle, risks will be identified in two ways:

(1) they will be part of a continuous, ongoing part of project management

so that risks are identified and managed as risks arise; and (2) there will be

an annual independent, comprehensive assessment of potential risks to

assure that potential new risks are fully identified and managed.

Risk sources identify common areas where risks may originate. The following are

considered when developing the source lists:

Changing uncertain requirements

Change in business need

Organizational change

Unprecedented efforts – estimates unavailable

Infeasible design

Unavailable technology

Unrealistic schedule estimates or allocation

Inadequate staffing, skills, or tool resources

Cost or funding issues

Uncertain or inadequate new subcontractor capability

Uncertain or inadequate new vendor capability

Other risks outside of the realm of technology.

a. Continuous Risk Identification

Because continuous methods of identifying risk are the first line of defense for a

project or program, the project team must maintain an atmosphere of open,

candid communication.

Continuous risk identification procedures may vary considerably, from one in

which any project team member or stakeholder can formally identify a perceived

risk by sending the project manager an e-mail, to procedures involving formal

risk identification documentation and a risk committee to evaluate and accept

them. Determine the most appropriate level of continuous risk identification for

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your project and describe it in a few paragraphs. A smooth-running project in its

steady-state phase will require a lesser degree of continuous risk identification

than a complex, mission-critical project just beginning the development phase.

Use your own judgment to define the best risk identification procedures for your

project.

b. Periodic, Comprehensive Risk Identification

In addition to continuous methods of assessing risk, a comprehensive risk

assessment should be a regular part of the project’s risk management process. At

least annually (and more often if necessary, such as at a significant project

milestone), the project team should conduct a comprehensive review of project

risks. For example, the review could correlate with the agency budget process

and the review and prioritization of agency business cases. Review Appendix B,

“Conducting an Open and Comprehensive Risk Review “of this document to

determine the appropriate level and schedule for your project. Then describe the

chosen approach in a few paragraphs.

2. EVALUATE RISKS

Introduce risk evaluation.

During the risk evaluation process, the project team will assess all suggested risks,

assign each to a risk owner, and enter the risk into the risk tracking process.

a. Risk Rating Method

Describe the method to be used to rate the risks. The following paragraphs

describe a two-stage method by first assessing the probability that the risk will

occur and the impact of the risk. We then calculate the risk magnitude. Risk

Magnitude (=Risk Probability of Occurrence times Risk Impact) is used by the

portfolio management tool (PMT) that HHS and IHS use to evaluate the projects

for investments that require HHS review and to track those projects. A scoring

scheme of High=3, Medium=2, Low=1 is used.

Risk evaluation is an assessment of the magnitude of the identified risks. The

Project Name team will measure the risk magnitude by combining estimates of

the estimated probability of the risk occurring and the risk’s potential impact. The

management of risks with a greater magnitude receives more management

attention than the management of risks with lesser levels of magnitude.

Table 1 provides the ratings and guidelines for the estimated probability that the

risk situation will occur. Table 2 provides the ratings and guidelines for

estimating the degree of impact on the project if the risk is not mitigated.

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Table 1. Probability of Occurrence

Probability Rating Guideline

Low 1 Below 30% probability of occurrence

Medium 2 Between 30% and 70% probability of occurrence

High 3 Greater than 70% probability of occurrence

Table 2. Degree of Impact

Impact Rating Guideline

Low 1 Will have minor impact on system development or operation

Medium 2 Will likely cause delay in one or more functions required to develop or operate the system

High 3 Will likely cause a significant delay and/or stoppage in system development or operation

The magnitude for each risk is then calculated by multiplying its rating for degree

of impact by its probability of occurrence rating:

Risk Magnitude = Probability Impact.

Table 3 shows the guidelines used to determine the risk magnitude for each

attribute.

Table 3. Risk Magnitude

Magnitude Rating Guideline

Low 1 or 2 Low likelihood of the risk moderately impacting one or more factors.

Medium 3 or 4 Medium likelihood of the risk moderately impacting one or more factors.

High 6 or 9 High likelihood of the risk severely affecting one or more factors. May have a high potential of causing program stoppage.

b. Actions for Different Risk Magnitude Ratings

Different risk magnitude ratings may require the project manager and the risk

owner to apply different risk management actions, such as the following:

Notifying senior management of project risk. A risk with a probability of

occurrence of High = 3 and potential impact on the program of High = 3,

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resulting in a risk magnitude of High = 9 might be required to be reported

as soon as possible to senior management officials (the project sponsor

and the IHS Chief Information Officer (CIO), for example).

Assigning a risk owner. A risk with a medium or high magnitude (risk

magnitude = 3, 4, 6, or 9) might have a risk owner assigned and have risk

management activities developed for it. Risks with a lower risk magnitude

might be handled in a less intensive manner.

Developing a risk management strategy and plan. A risk with a low

magnitude (risk magnitude = 1 or 2) might be tracked by the project

manager but not have an assigned risk owner or risk management

activities.

Appropriate risk management action depends on risk magnitude, the nature and

complexity of the project itself, and good management judgment.

Determine the appropriate level of risk tracking for your project and describe it

in a few paragraphs.

3. DEVELOP RISK MANAGEMENT STRATEGY

The most appropriate strategy for managing each risk should be determined. If a

negative risk can be avoided (e.g., changing the project plan), if it is transferred

(e.g., though the use of a firm fixed- price contract), or if it is accepted (e.g., there

is no other suitable response strategy), it need no longer be part of the on-going

risk management strategy, although it should be identified and the action taken on

documented. The remaining risk management strategy for a negative risk should

be to develop a risk management strategy, which is what you do to try to keep the

risk from occurring in the first place.

For a positive risk (i.e., an opportunity), the risk management strategy may

include exploiting it by insuring that the opportunity will definitely happen;

sharing or transferring it to another organization that can best take advantage of

it; or enhancing it or increasing the probability of the opportunity occurring.

Regardless of whether the risk is positive or negative, if it is a risk that is being

managed and is of medium or of high magnitude, you should also develop a risk

response or contingency plan, which is what you plan to do if the risk occurs. The

risk management strategy is expressed in a short statement that describes the

approach to managing the risk. For a risk with a high magnitude, a specific risk

owner may be assigned to manage the risk and its management activities. For

negative risks that cannot be mitigated or which are too expensive to mitigate, a

risk response or contingency plan should be developed.

Give one or two examples that are relevant to your project. An example follows:

9

It is the responsibility of the risk owner to develop an appropriate risk

management or risk management strategy and to get it approved by the Project

Name team.

The risk management strategy is a short statement that describes the approach to

managing the risk. For example, the statement below describes a mitigation

strategy for a system interface risk:

“The organization will acquire an independent validation and

verification (IV&V) contractor to assist with developing interface

test requirements and an integrated test plan, and it will perform

interface testing before acceptance.“

The statement below is an example of a mitigation strategy for the risk of

declining system effectiveness from the perspective of users:

“Continuous assessment of program usability and effectiveness

will be maintained though open communication and regular user

group meetings. Users will participate in annual program risk

assessment exercises. “

Management strategies may be even more concise. Here’s an example of a

security risk mitigation statement:

“The project manager will implement the security protocols

provided by IHS and NIST. “

There are other approaches to risk management other than mitigation that may be

appropriate. Any of these approaches could be a risk management strategy that

should be documented in the risk management plan:

Changing the project plan to eliminate the risk altogether

Transferring the risk impact to a third party

Accepting that there is no cost-effective approach to mitigation and that

contingency planning will be the best way to manage the risk. Active

acceptance may involve the creation of contingency plans and passive

acceptance may leave actions to be determined as needed. A decision to

accept a risk must be communicated to stakeholders.

4. IDENTIFY RISK MANAGEMENT ACTIVITIES

Describe how you plan to have risk management actions developed by the risk

owner (or whomever else might be assigned responsibility for developing the

plans), and how risk management activities are approved, tracked and reported.

10

A variety of approaches are possible depending on the complexity and life-cycle

phase of the project and the complexity of the risk management strategy. For

example, for simple risk management strategies, a list of actions with due dates

and responsibilities may suffice. Or, for complex or high-magnitude risks, a

detailed plan for risk management might be needed. Using Microsoft Project as a

tool to help manage the risk management activities may be appropriate.

Determine the best approach for your project and describe it in a few paragraphs.

Say something like the following.

Once the risk management strategy is approved by the project team, the risk

owner will develop an approach and propose actions to execute the risk

management strategy. The proposed actions are defined in a work plan, unless a

more detailed approach is directed by the project manager.

With the help of the project manager, appropriate members of the team and others

as necessary, the risk management actions will be assigned to specific individuals

and formalized.

The risk owner tracks and reports on progress toward risk management at

predetermined risk review sessions conducted by the project team—at least

monthly.

B. Execution Phase

Figure 3 highlights the execution phase of the risk management process. This

phase has three steps:

Execute risk management activities

Track and report on progress

Review and reevaluate risks periodically

11

Figure 3. Project Name Risk Management Process—Execution Phase

Execution

Phase

Step 1

Identify

Risks

Step 4

Identify Risk

Management

Activities

Step 3

Develop Risk

Management

Strategy

Step 2

Evaluate

Risks

Execute Risk

Management

Activities

Track and

Report on

Progress

Review and Reevaluate

Risks Periodically

1. EXECUTE RISK MANAGEMENT ACTIVITIES

Describe responsibilities for execution of the risk management activities in a few

paragraphs. Say something like the following.

Those responsible for executing the risk management activities will execute them

in accordance with the plans managed by the risk owners.

The risk owner maintains responsibility for overall execution of the risk

management strategy and the corresponding risk management activities.

2. TRACK AND REPORT ON PROGRESS

Describe how information on risks and risk management planned activities will

be tracked. Begin by stating something like the following.

Performance and progress on mitigating the risks are tracked against the risk

management activities. Progress against the risk management plan is available for

review by the project manager and designated members of the project team at any

time.

Then, describe the reporting schedules and venues for reporting by the risk

owners. Many reporting options are possible depending on the nature of the

project and the severity of the risk. Low-severity risks on stable operating systems

may be reviewed by the project team at a regularly scheduled meeting at least

once each quarter. For complex or high-magnitude risks or for risks associated

with a large, complex, and mission-critical project, more frequent reporting is

warranted. In some cases, it may be appropriate to hold a weekly or monthly ad

hoc project risk meeting that is attended by stakeholders and senior managers, as

well as team members.

12

In all situations, information on risks, their risk management strategies, risk

management activities, and progress toward mitigation should be available to

appropriate staff and managers.

Progress toward mitigating risks will be reported annually to senior Area

Office/Organization Unit and IHS management and to OMB through the CPIC

process and the OMB Exhibit 300.

If you plan to report high risks to senior management as soon as they are

identified, as discussed in the Evaluate Risks section (III. A. 2. b), include this

reporting requirement here as well. The following is an example.

The IHS CIO will be notified and briefed whenever a high-magnitude risk is

identified.

3. REVIEW AND REEVALUATE RISKS PERIODICALLY

Describe plans for periodic review and reevaluation of risks. It should be done at

least annually but should also be performed at significant project milestones, such

as after selection of a system integrator or at completion of end-to-end testing.

Describe what is appropriate for your project. The following is an example.

The project team, led by the project manager, will assist with a periodic

comprehensive review of the risk posture of the Investments. This review will

take place at least once each year in preparation for the annual business case

review and prioritization by the IHS Information Technology Investment Review

Board (ITIRB).

During the reevaluation process, it may be determined that some risks that were

identified in past evaluations, or as part of the ongoing risk identification process,

have been successfully mitigated. These risks will still be listed on the risk

inventory with an annotation that no action is necessary, the risk has been

successfully mitigated. This will demonstrate that the risk was identified and

managed at some time as part of the risk identification and assessment process.

IV. RISK MANAGEMENT ROLES AND RESPONSIBILITIES

Describe the risk management roles and responsibilities for your project. Include

at least the project manager and the risk owner. Review and cite the roles and

responsibilities sections for the CPIC program contained in Capital Planning and

Investment Control Policy and Guidelines issued by the Office of the CIO. Say

something like the following.

The project manager and the risk owner have specific risk management

responsibilities for project risk management.

13

A. Project Name Project Manager

The project manager is responsible for overseeing, monitoring, and assigning all

risk management activities.

The project manager will schedule a periodic independent review of program

risks at least once each year. This review will cover the perspectives of all

program stakeholders. It will result in identified risks, risk ratings, and suggested

risk management strategies.

B. Risk Owner

The risk owner has the following responsibilities:

Propose a strategy for mitigating the assigned risk and get the strategy

approved by the team and project manager

Develop an approach and action plan to execute the risk management

strategy

With the help of the project manager, assign responsibility for completion

of the action plan steps

Track and report on progress in mitigating the risk

14

APPROVALS:

Jonas Sa lk Pro jec t Inves tment Mange r

Date

Howard Hays Ch ie f In fo rmat ion Of f ice r (Ac t ing)

Date

Samue l Mudd Pro jec t Sponso r

Date

B-1

APPENDIX B. CONDUCTING AN OPEN AND

COMPREHENSIVE RISK REVIEW

Risk management includes assessment of risk, development and execution of risk

management strategies, and monitoring of progress. This appendix provides

guidance on how to conduct a risk assessment.

Risk assessment involves identifying and understanding the potential risks during

project development and implementation: the events that, if they occurred, would

prevent the project from achieving its cost, schedule, or performance objectives.

These events may be related to technological or process uncertainty, cultural

resistance to change, lack of progress, failure to achieve critical metrics, or many

other factors.

One effective way of assessing risk is through a periodic, open and

comprehensive risk review. 5

The risk review team normally consists of a leader

and one or two team members. The team convenes representatives from the

project staff, users, and stakeholders in an environment of open communication.

The risk review must be comprehensive so that the full spectrum of risks from all

sources is considered. During a risk review, the risk assessment team must ask the

right questions and ask the right people, as shown in Figure B-1.

Figure B-1. Two Elements of Effective Risk Assessment

Ask the right

QUESTIONS and Ask the right

PEOPLE

Ask the Right Questions

Risks that are managed are minimized. Understanding and communicating project

risks help manage the expectations of senior management and other stakeholders.

One such stakeholder, OMB, may ask for the formal risk management plan and

annual reporting of project risks and risk management progress before approving

requested project funding.

OMB’s risk management reporting requirements for large projects are useful for

managing risk in projects of all sizes because they contain a broad,

comprehensive set of risk categories that are useful to project managers as a

starting point for defining their project risks.

5 Two important ways of identifying risk are continuous risk identification, which requires an

open and honest exchange of ideas as part of daily project management, and comprehensive risk

identification, which entails a periodic assessment of risk on a project-wide basis. For additional

information on these types of risk identification, see Appendix A, Section III.A.1, Identify Risks.

B-2

OMB has identified 19 risk categories, presented in Figure B-2, that provide a

minimum set of risk areas to be considered by the project risk assessment team.

Figure B-2. OMB’s 19 Risk Categories

Risk Categories for All Investments

1) Schedule

2) Initial cost

3) Life-cycle cost

4) Technical obsolescence

5) Feasibility

6) Reliability of systems

7) Dependencies and interoperability

8) Surety (asset protections)

9) Risk of creating a monopoly

10) Capability of agency to manage the

investment

11) Overall risk of investment failure

Risk Categories for IT

Investments

12) Organizational and change

management

13) Business

14) Data/information

15) Technology

16) Strategic

17) Security

18) Privacy

19) Project resources

The figure separates the risks into two categories: (1) those for all investments

and (2) those for IT investments. There are similarities between those in the first

set of risk categories and those in the second. It is helpful to consider the risks

grouped according to their overall management-related area. Reordering the risk

categories into related risk areas, as shown in Figure B-3, makes them more user

friendly and more meaningful to technical personnel, functional users, and senior

management.

B-3

Figure B-3. Restructured OMB Risk Categories

Business Impact

16—Strategic

13—Business

5—Feasibility

9—Risk of creating a monopoly

Resource Availability

19—Project resources

1—Schedule

2—Initial cost

3—Life-cycle cost

Management and Oversight

10—Capability of agency to manage

the investment

12—Organization and change

management

7—Dependencies and

interoperability

Technical Issues

4—Technical obsolescence

15—Technology

6—Reliability of systems

14—Data/information

Security

17—Security

8—Surety

18—Privacy

Summary of Risk

11—Overall risk of investment

failure

Restructured Investment Risk Categories

The order of assessing these risks doesn’t matter. However, it improves the ability

of the risk assessment team to identify risks if the assessment starts with those

areas that are broadest in scope. The risk assessment leader should start the

assessment with Business Impact; the highest level, least technical of the risk

areas. Next the risk assessment leader should address the other areas according to

Resource Availability, Management and Oversight, Technical Issues, and

Security, the most narrow and specialized area. The risk assessment leader should

address the Summary of Risk last. Table B-1 lists the order in which the risks

should be addressed and provides some examples of topics that may be

considered while assessing risk in each risk category.

B -4

T a b le

B -1

. O

rd e r

fo r

A d d re

s s in

g R

is k s a

n d C

o n s id

e ra

ti o n s

R is

k a

re a

R is

k c

a te

g o

ry C

o n

s id

e ra

ti o

n s

S a

m p

le Q

u e

s ti o

n s

B u

s in

e s s

Im p

a c t

1 6

— S

tr a

te g

ic R

is k a

s s o

c ia

te d

w it h

s tr

a te

g ic

/g o

v e

rn m

e n

t- w

id e

g o

a ls

t o

p m

a n

a g

e m

e n

t s u

p p

o rt

a n

d c

o m

m u

n ic

a ti o

n ,

c o

n s is

te n

c y w

it h

s tr

a te

g ic

p la

n s ,

h ig

h -l

e v e

l v is

ib ili

ty w

it h

o u

ts id

e s

ta k e

h o

ld e rs

s u

c h

a s O

M B

o r

C o

n g

re s s ,

a n

d o

th e

r p

o lit

ic a

l im

p a

c ts

.

R is

k t

h a

t th

e p

ro p

o s e

d a

lt e

rn a

ti v e

f a

ils t

o r

e s u

lt i n

t h

e

a c h

ie v e

m e

n t

o f

th o

s e

g o

a ls

o r

in m

a k in

g c

o n

tr ib

u ti o

n s t

o t h

e m

.

R is

k t

h a

t s tr

a te

g ic

g o

a ls

a n

d o

b je

c ti v e

s ,

in c lu

d in

g P

M A

g o

a ls

o r

H H

S p

ri o

ri ti e

s ,

m a

y c

h a

n g

e .

R is

k t

h a

t th

e o

b je

c ti v e

s o

f th

e p

ro je

c t

a re

n o

t c le

a rl

y l in

k e

d t

o

p ro

g ra

m n

e e

d s ,

to t

h e

a g

e n

c y ’s

o v e

ra ll

s tr

a te

g ie

s ,

a n

d t

o

g o

v e

rn m

e n

t- w

id e

p o

lic ie

s a

n d

s ta

n d

a rd

s .

R is

k t

h a

t th

e i n it ia

ti v e

i s n

o t b

a s e

d o

n c

le a

rl y u

n d

e rs

to o

d

n e

e d

s o

r o

p p

o rt

u n

it ie

s a

n d

i s i n

c o

n s is

te n

t w

it h

t h

e o

v e

ra ll

s tr

a te

g ie

s a

n d

a rc

h it e

c tu

re s u

s e

d b

y t

h e

a g

e n

c y a

n d

t h

e

fe d

e ra

l g

o v e

rn m

e n

t (i

.e .,

F e

d e

ra l E

n te

rp ri

s e

A rc

h it e

c tu

re ).

D o

e s t

h is

p ro

je c t

s u

p p

o rt

a g

o v e

rn m

e n

t w

id e

i n

it ia

ti v e

?

D o

e s t

h is

p ro

je c t

s u

p p

o rt

t h

e s

tr a

te g

ic g

o a

l( s )

o f

H H

S o

r o

f th

e O

P D

IV s ?

H a

v e

s ta

k e

h o

ld e

rs (

e .g

., O

P D

IV s )

b e

e n

e n

g a

g e

d ?

D o

s ta

k e

h o

ld e

rs h

a v e

b

u y -i

n w

it h

s c o

p e

a n

d r

e q

u ir

e m

e n

ts ?

1 3

— B

u s in

e s s

R is

k a

s s o

c ia

te d

w it h

t h

e v

a lid

ly o

f th

e b

u s in

e s s c

a s e

f o

r th

e

p ro

je c t,

t h

e c

o m

p le

te n

e s s a

n d

v a

lid ly

o f

th e

s p

e c if ie

d

fu n

c ti o

n a

l re

q u

ir e

m e

n ts

, a

n d

t h

e n

e e

d f

o r

re e

n g

in e

e ri

n g

s u

b je

c t

b u

s in

e s s p

ro c e

s s e s .

R is

k t

h a

t th

e b

u s in

e s s g

o a ls

o f

th e

p ro

g ra

m o

r in

it ia

ti v e

w ill

n o

t b

e a

c h

ie v e

d .

R is

k t

h a

t th

e p

ro g

ra m

e ff

e c ti v e

n e

s s t

a rg

e te

d b

y t

h e

p ro

je c t

w ill

n

o t

b e

a c h

ie v e

d .

Is t

h e

b u

s in

e s s n

e e

d a

n d

p ro

je c t

s c o

p e

w e

ll- d

e fi n

e d

?

H a

v e

t h

e p

la n

n e

d i m

p ro

v e

m e

n ts

/b e

n e

fi ts

t o

b u

s in

e s s o

p e

ra ti o

n s o

r c u

s to

m e

r re

s u

lt s b

e e

n d

o c u m

e n

te d

?

H a

v e

o p

e ra

ti o

n a

l p

e rf

o rm

a n

c e

m e

a s u

re s b

e e

n i d

e n

ti fi e

d a

n d

s ig

n e

d -o

ff b

y

th e

s p

o n

s o

r a

n d

( O

P D

IV s )

m a

jo r

s ta

k e

h o

ld e

rs ?

H a

s a

n O

p e

ra ti o

n a

l A

n a

ly s is

b e

e n

p e

rf o

rm e

d a

t le

a s t

a n

n u

a lly

?

H a

v e

a n

y s

h o

rt c o

m in

g s b

e e

n i d

e n

ti fi e

d ?

5 —

F e

a s ib

ili ty

R is

k a

s s o

c ia

te d

w it h

t h

e f

e a

s ib

ili ty

o f

th e

r e

q u

ir e

m e

n ts

f ro

m a

te

c h

n ic

a l a

n d

p e

rf o

rm a

n c e

p o

in t

o f

v ie

w a

n d

t h

e o

rg a

n iz

a ti o

n ’s

fa m

ili a

ri ty

w it h

t h

e p

ro je

c t

lif e -c

y c le

m e

th o

d u

s e

d w

it h

in t

h e

o

rg a

n iz

a ti o

n o

r a

s i m

p le

m e

n te

d b

y o

th e

rs .

R is

k o

f in

s u ff

ic ie

n t

a b

ili ty

t o

s u

c c e

s s fu

lly d

e v e

lo p

a n

d

im p

le m

e n

t th

e p

ro je

c t

w it h

in d

e fi n

e d

t e c h

n ic

a l, s

c o

p e

, c o

s t,

a

n d

s c h

e d

u le

p a

ra m

e te

rs t

o s

u c c e s s fu

lly m

e e

t th

e

p e

rf o

rm a

n c e

g o

a ls

.

Is t

h e

p ro

p o

s e

d t

e c h

n o

lo g

y i n

v o

lv e

d f

e a

s ib

le ?

H a

s a

n a

lt e

rn a

ti v e

s a

n a

ly s is

b e

e n

p e

rf o

rm e

d ,

is i t

le s s t

h a n

3 y

e a

rs o

ld ?

D

o e

s /d

id t

h e

a lt e

rn a

ti v e

s a

n a

ly s is

e x a

m in

e u

s e

o f

o th

e r

te c h

n o

lo g

ie s (

e .g

.,

d if fe

re n

t C

O T

S p

ro d

u c ts

a n

d /o

r d

if fe

re n

t h

o s ti n

g s

o lu

ti o

n s :

C lo

u d

C

o m

p u

ti n

g /p

ri v a

te c

lo u

d )?

Is t

h e

p ro

p o

s e

d s

o lu

ti o

n f

e a s ib

le ?

Is t

h e

s o

lu ti o

n a

s s

im p

le a

s p

o s s ib

le ?

B -5

T a b le

B -1

. O

rd e r

fo r

A d d re

s s in

g R

is k s a

n d C

o n s id

e ra

ti o n s

R is

k a

re a

R is

k c

a te

g o

ry C

o n

s id

e ra

ti o

n s

S a

m p

le Q

u e

s ti o

n s

B u

s in

e s s

Im p

a c t

9 —

R is

k o

f c re

a ti n

g a

m

o n

o p

o ly

R is

k a

s s o

c ia

te d

w it h

t h

e o

v e

r- re

lia n

c e

o n

a p

a rt

ic u

la r

v e

n d

o r

o r

o n

p ro

p ri

e ta

ry o

r s p

e c ia

lt y s

o ft

w a

re t

h a

t w

o u

ld l im

it p

ro je

c t

e x p

a n

s io

n o

r fl e

x ib

ili ty

.

D o

e s t

h e

t e

c h

n o

lo g

y /v

e n

d o

r s e

le c te

d t

ri g

g e

r a

r is

k t

h a

t th

e

D e

p a

rt m

e n

t/ O

P D

IV w

ill b

e l o

c k e

d i n

t o

a s

p e

c if ic

s e

t o

f v e n

d o

rs a

n d

t h

e ir

p

ro d

u c ts

?

R e

s o

u rc

e

A v a

ila b

ili ty

1

9 —

P ro

je c t

re s o

u rc

e s

R is

k a

s s o

c ia

te d

w it h

t h

e s

ta b ili

ty a

n d

a d

e q

u a

c y o

f p

ro je

c t s ta

ff

a n

d p

ro je

c t

b u

d g

e t

fo r

to d

a y a

n d

t h

e f

u tu

re .

In c lu

d e

re s o

u rc

e s

th a

t m

ig h

t b

e a

v a

ila b

le f

ro m

c o

n tr

a c to

rs .

R is

k t

h a

t th

e a

v a

ila b

ili ty

o f

p e

o p

le ,

fu n

d s ,

s c h

e d

u le

, a

n d

t o

o ls

th

a t

a re

t h

e n

e c e

s s a

ry i n

g re

d ie

n ts

f o

r s u

c c e

s s fu

lly

im p

le m

e n

ti n

g t

h e

p ro

je c t

w ill

b e

i n

a d

e q

u a

te (

if a

n y a

re

in a

d e

q u

a te

, in

c lu

d in

g th

e q

u a

lif ic

a ti o

n s o

f th

e p

e o

p le

, th

e re

i s

ri s k ).

R is

k t

h a

t a

p p

ro p

ri a

te t

ra in

in g w

ill n

o t

b e

a v a

ila b

le i n

a t

im e

ly

fa s h io

n .

D o

t h

e C

O T

S v

e n

d o

rs h

a v e

a n

d e

s ta

b lis

h e

d r

e p

u ta

ti o

n o

f d

e liv

e ri

n g

q u

a lit

y

p ro

d u

c t

o n

t im

e ?

A re

t h

e c

o n

tr a

c to

rs q

u a

lif ie

d f

o r

th is

t y p

e o

f w

o rk

; d

o t

h e

y h

a v e

a n

e

s ta

b lis

h e

d t

ra c k r

e c o

rd ?

A re

r e

q u

ir e

m e

n ts

/s c o

p e

, c o

s t

a n

d s

c h

e d

u le

w e

ll d

e fi n

e d

?

A re

n e

c e

s s a

ry a

lg o

ri th

m s o

r w

o rk

f lo

w s w

e ll

u n

d e

rs to

o d

?

D o

t h

e c

o n

tr a

c t

v e

h ic

le s p

ro v id

e c

o s t c o

n tr

o ls

; a

re t

h e

y a

p p

ro p

ri a

te t

o t

h e

p

ro d

u c t

a n

d /o

r s e

rv ic

e t

o b

e p

ro v id

e d

?

H a

s t

h e

p ro

je c t

m a

n a

g e

m e

n t

te a

m w

o rk

e d

w it h

t h

e b

u s in

e s s

o w

n e

rs /s

ta k e

h o

ld e

rs t

o i d

e n

ti fy

c a

p a

b ili

ti e

s o

r c o

m p

o n

e n

ts t

h a

t m

ig h

t n

e e

d

to b

e r

e s c h

e d

u le

o r

d e

la y e

d i n

t h

e e

v e

n t

th a

t b

u d

g e

t c u

ts a

ff e

c t

th e

a b ili

ty

to a

u th

o ri

z e

a n

d e

x e

c u

te t

a s k s a

s p

la n

n e

d ?

1 —

S c h

e d

u le

R is

k a

s s o

c ia

te d

w it h

t h

e s

ta b ili

ty ,

re a

lit y ,

a n

d v

a lid

it y

o f

th e

ti m

e e

s ti m

a te

d a

n d

a llo

c a

te d

f o

r th

e d

e v e

lo p

m e

n t,

d

e p

lo y m

e n

t, a

n d

o p

e ra

ti o

n o

f th

e s

y s te

m .

In c lu

d e

th e

c o s t

o r

im p

a c t

o f

n o

t m

e e

ti n

g t

h e

s c h

e d

u le

.

T w

o r

is k a

re a

s b

e a

ri n

g o

n s

c h

e d

u le

r is

k a

re (

1 )

th e

r is

k t

h a

t th

e s

c h

e d

u le

e s ti m

a te

s a

n d

o b

je c ti v e

s a

re n

o t

re a

lis ti c a

n d

( 2

) th

e r

is k t

h a

t p

ro g

ra m

e x e

c u

ti o

n w

ill f

a ll

s h

o rt

o f

th e

s c h

e d

u le

o

b je

c ti v e

s .

D o

e s t

h e

p ro

je c t

h a

v e

a n

I n

te g

ra te

d M

a s te

r S

c h

e d

u le

?

Is t

h e

re a

h ig

h l e

v e

l o

f c o

n fi d e

n c e

i n

t h

e s

c h

e d

u le

f o

r th

e p

ro je

c t?

D o

e s t

h e

s c h

e d

u le

a d

d re

s s a

ll o f

th e

E P

L C

d o

c u

m e

n ta

ti o

n i n

a d

d it io

n t

o

th e

f u

n c ti o

n a

l d

e liv

e ra

b le

s ?

If p

ro c e

s s e

s a

n d

p ro

c e

d u

re s a

re b

e in

g a

ff e

c te

d i s d

e liv

e ri

n g

t ra

in in

g a

n d

d

e v e

lo p

in g

t h

e r

e la

te d

d o

c u

m e

n ta

ti o

n i n

c lu

d e

d i n

t h

e s

c h

e d

u le

?

B -6

T a b le

B -1

. O

rd e r

fo r

A d d re

s s in

g R

is k s a

n d C

o n s id

e ra

ti o n s

R is

k a

re a

R is

k c

a te

g o

ry C

o n

s id

e ra

ti o

n s

S a

m p

le Q

u e

s ti o

n s

R e

s o

u rc

e

A v a

ila b

ili ty

2 —

In it ia

l c o s t

R is

k a

s s o

c ia

te d

w it h

t h

e a

d e q

u a

c y ,

c o

m p

le te

n e

s s ,

a c c u

ra c y ,

a n

d v a

lid it y

o f

th e

i n it ia

l fu

n d in

g e

s ti m

a te

s ,

th e

s u

p p

o rt

in g

in

fo rm

a ti o

n t

h a

t ju

s ti fi e

s t

h o s e

i n

it ia

l fu

n d

in g

e s ti m

a te

s ,

a n

d

th e

ir r

e la

ti o

n s h

ip t

o l o

n g

e r

te rm

f u

n d

in g

n e

e d

s .

Is t

h e

re a

h ig

h l e

v e

l o

f c o

n fi d e

n c e

i n

t h

e e

s ti m

a te

s f

o r

th e

p ro

je c t?

Is t

h e

p ro

je c t

s c o

p e

s u ff

ic ie

n tl y d

e fi n

e d

t o

i d

e n

ti fy

s iz

e /s

c a le

/c o

m p

le x it y o

f th

e p

ro je

c t

e ff

o rt

?

A re

t h

e e

s ti m

a te

s b

a s e

d o

n t

w o

o r

m o

re r

e lia

b le

e s ti m

a ti n

g t

e c h

n iq

u e

s ?

H a

v e

m a

n a

g e

m e

n t

a n

d o

v e

rs ig

h t

re q

u ir

e m

e n

ts ,

s u

c h

a s w

o rk

fl o

w /s

ta tu

s

re p

o rt

in g

, id

e n

ti fi e

d ?

A re

t h

e r

e q

u ir

e m

e n

ts w

e ll

u n

d e

rs to

o d

a n

d w

e ll

d e

v e

lo p

e d

?

A re

s e

c u

ri ty

r e

q u

ir e

m e

n ts

w e

ll e

s ta

b lis

h e

d ?

D o

s e

c u

ri ty

r e

q u

ir e

m e

n ts

i n

c lu

d e

a u

d it l o

g g

in g

a n

d r

e g

u la

r a

n a

ly s is

o f

a u

d it

lo g

s ?

In a

d d

it io

n t

o t

h e

f u

n c ti o

n a lit

y a

n d

s e

c u

ri ty

r e

q u

ir e

m e

n ts

, h

a v e

a ll

o f

th e

“i

lit y ”

re q

u ir

e m

e n

ts b

e e

n i d

e n

ti fi e

d (

i. e

., r

e lia

b ili

ty ,

a v a

ila b

ili ty

, m

a in

ta in

a b

ili ty

, u

s a

b ili

ty ,

s u

p p

o rt

a b

ili ty

, e

tc .)

?

3 —

L if e

-c y c le

c o

s t

R is

k a

s s o

c ia

te d

w it h

t h

e a

d e q

u a

c y ,

c o

m p

le te

n e

s s ,

a c c u

ra c y ,

a n

d v a

lid it y

o f

lif e

-c y c le

c o s t e

s ti m

a te

s ,

th e

s u

p p

o rt

in g

in

fo rm

a ti o

n t

h a

t ju

s ti fi e

s t

h o s e

l if e

-c y c le

f u

n d

in g

e s ti m

a te

s ,

a n

d th

e l ik

e ly

s ta

b ili

ty o

f lo

n g

e r

te rm

a v a

ila b

ili ty

o f

fu n

d s .

T h

is

in c lu

d e s t

h e

i m

p a

c t

o f

e rr

o rs

i n

t h

e c

o s t

e s ti m

a ti n

g

te c h

n iq

u e

(s )

u s e

d (

g iv

e n

t h

a t

th e

t e

c h

n ic

a l re

q u

ir e

m e

n ts

w e

re

p ro

p e

rl y d

e fi n

e d

).

L if e c y c le

c o

s ts

i n

c lu

d e

p la

n n

in g

, d

e v e

lo p

m e

n t,

o p

e ra

ti o

n s ,

a n

d r

e ti re

m e

n t

c o

s ts

.

If t

h is

p ro

je c t

is g

o in

g t

o b

e f o

llo w

e d

b y a

d d

it io

n a

l fu

n c ti o n

a lit

y

Is t

h e

re a

g o

o d

u n

d e

rs ta

n d

in g

o f

th e

p ro

je c ts

/e n

h a

n c e

m e

n ts

t h

a t

a re

n

e e

d e

d ?

H a

s t

h e

a d

d it io

n a

l fu

n c ti o

n a

lit y b

e e

n c

o n

s id

e re

d i n

t h

e d

e s ig

n ?

Is t

h e

s y s te

m s

o lu

ti o

n d

e s ig

n e

d t

o b

e m

a in

ta in

a b

le

Is t

h e

d e

s ig

n a

n d

a c q

u is

it io

n s

tr u

c tu

re d

s o

t h

e s

o lu

ti o

n i s n

o t

a p

ro p

ri e

ta ry

s o

lu ti o

n t

h a

t c a

n o

n ly

b e

s u

p p

o rt

e d

b y o

n e

v e

n d

o r/

c o

m p

e ti to

r?

A re

t ra

in in

g a

n d

m a

in te

n a

n c e

c o

s ts

c o

n s id

e re

d i n

t h

e l if e

c y c le

c o

s t

a n

a ly

s is

?

W ill

t h

e p

la n

n e

d s

o lu

ti o

n /s

y s te

m b

e s

u p

p o

rt a

b le

, a

n d

m a

in ta

in a

b le

?

W h a

t is

t h

e p

la n

f o

r m

a in

ta in

in g

t h

e s

y s te

m o

n c e

i t

is d

e p

lo y e

d ?

Is t

h e

re f

u n

d in

g t

o m

a in

ta in

t h

is s

y s te

m ?

B -7

T a b le

B -1

. O

rd e r

fo r

A d d re

s s in

g R

is k s a

n d C

o n s id

e ra

ti o n s

R is

k a

re a

R is

k c

a te

g o

ry C

o n

s id

e ra

ti o

n s

S a

m p

le Q

u e

s ti o

n s

M a

n a

g e

m e

n t

a n

d O

v e

rs ig

h t

1 0

— C

a p

a b

ili ty

o f

a g

e n

c y t

o m

a n

a g

e

th e

i n

v e

s tm

e n

t

R is

k a

s s o

c ia

te d

w it h

t h

e e

x p e

ri e

n c e

o f

th e

p ro

je c t

m a

n a

g e

r a

n d

s ta

ff ’ in

t h

e d

e v e

lo p

m e

n t

o r

o p

e ra

ti o

n o

f s y s te

m s

w it h

s im

ila r

c o

m p

le x it y a

n d

/o r

s iz

e ,

th e

a p

p lic

a ti o

n d

o m

a in

, a

n d

t h

e

fu n

c ti o

n a

l b

u s in

e s s p

ro c e

s s e s i n

v o

lv e

d .

R is

k a

s s o

c ia

te d

w it h

t h

e e

x is

te n

c e

o f

a n

e x p

e ri

e n

c e

d p

ro je

c t

m a

n a

g e

m e

n t

te a

m ,

a p

p ro

p ri

a te

p ro

je c t

m a

n a

g e

m e

n t

s tr

u c tu

re s ,

e x e

c u

ti v e

m a

n a

g e

m e

n t

s u

p p

o rt

, g

o v e

rn a

n c e

, c le

a r

a n

d d

e fi n

e d

r e

s p

o n

s ib

ili ti e

s , a

s w

e ll

a s d

e m

o n

s tr

a te

d

e x p

e ri

e n

c e

i n

m a

n a

g in

g t

h e

d e

v e

lo p

m e

n t

o r

o p

e ra

ti o

n o

f p

ro je

c ts

o f

s im

ila r

c o

m p

le x it y a

n d

/o r

s iz

e ,

th e

a p

p lic

a ti o

n

d o

m a

in ,

a n

d th

e f

u n

c ti o

n a

l b u

s in

e s s p

ro c e

s s e s i n

v o

lv e

d .

A ls

o r

e la

te s t

o t

h e

d e

g re

e t

o w

h ic

h p

ro g

ra m

p la

n s a

n d

s tr

a te

g ie

s e

x is

t a

n d

a re

r e

a lis

ti c a

n d

c o

n s is

te n

t.

D o

e s t

h e

p ro

je c t

h a

v e

a P

M w

it h

e x p

e ri

e n

c e

i n

t h is

t y p

e a

n d

/o r

s iz

e o

f p

ro je

c t?

D o

e s t

h e

P M

h a

v e

c e

rt if ic

a ti o

n a

n d

/o r

a p

p ro

p ri

a te

t ra

in in

g ?

D o

e s t

h e

p ro

je c t

h a

v e

t e

a m

m e

m b

e rs

w it h

a p

p ro

p ri

a te

e x p

e ri

e n

c e

t o

m

a n

a g

e ,

tr a

c k p

ro g

re s s a

n d

e n

s u

re q

u a

lit y d

e liv

e ra

b le

s (

e .g

., P

M ,

E P

L C

o r

te c h

n ic

a l e

x p

e rt

is e

a p

p ro

p ri

a te

t o

t y p

e o

f p

ro je

c t)

?

A re

g o

o d

p ro

je c t

m a

n a

g e

m e

n t,

a c q

u is

it io

n m

a n

a g

e m

e n

t, r

e q

u ir

e m

e n

ts

m a

n a

g e

m e

n t,

e tc

., c

o n

tr o

ls i n

p la

c e

?

A re

t h

e re

a d

e q

u a

te t

o o

ls f

o r

p la

n n

in g

a n

d m

a n

a g

in g

t h

e p

ro je

c t?

1 2

— O

rg a

n iz

a ti o

n

a n

d c

h a

n g

e

m a

n a

g e

m e

n t

R is

k a

s s o

c ia

te d

w it h

t h

e w

ill in

g n

e s s a

n d

a b

ili ty

o f

th e

o

rg a

n iz

a ti o

n /a

g e

n c y

to a

c c e

p t

th e

c u

lt u

ra l, p

ro c e

s s ,

a n

d

p ro

c e

d u

ra l c h

a n

g e

s r

e q

u ir

e d

b y t

h e

p ro

je c t.

I n

c lu

d e

th e

e

x is

te n c e

o r

a d

e q

u a

c y o

f th

e c

h a

n g

e m

a n

a g

e m

e n

t p

la n

, c o

m m

u n

ic a

ti o

n s p

la n

, a

n d

u s e

r tr

a in

in g

p la

n .

R is

k a

s s o

c ia

te d

w it h

b y p

a s s in

g ,

la c k o

f u s e

, im

p ro

p e

r u

s e

, o

r a

d h

e re

n c e

t o

n e

w s

y s te

m s a

n d

p ro

c e

s s e

s d

u e

t o

o rg

a n

iz a

ti o

n a

l s tr

u c tu

re a

n d

c u

lt u

re ;

in a

d e

q u

a te

t ra

in in

g .

Is o

rg a

n iz

a ti o

n a

l c h

a n

g e

r e

q u

ir e

d ?

Is r

e e

n g

in e

e ri

n g

/ re

o rg

a n

iz in

g o

f b

u s in

e s s p

ro c e

s s e s o

r w

o rk

fl o

w s

re q

u ir

e d

?

Is t

h e

re a

d e

q u

a te

b a

c k in

g b

y s

p o

n s o

rs a

n d

k e

y s

ta k e

h o ld

e rs

?

A re

p la

n n

e d

c h

a n

g e

s w

e ll

c o m

m u

n ic

a te

d ?

Is t

ra in

in g

f o

r n

e w

s y s te

m a

s w

e ll

a s n

e w

p ro

c e

s s e

s p

la n n

e d

?

7 —

D e

p e

n d

e n

c ie

s a

n d

in te

ro p

e ra

b ili

ty

R is

k a

s s o

c ia

te d

w it h

t h

e d

e p e

n d

e n

c e

o f

th e

p ro

je c t

o n

d a

ta

fr o

m o

th e

r s y s te

m s a

n d

p ro

c e

s s e

s (

e x is

ti n

g a

n d

p la

n n

e d

) (e

x is

ti n

g o

r in

d e

v e

lo p

m e

n t)

w it h

in t

h e

A g

e n

c y a

n d

a c ro

s s t

h e

F

e d

e ra

l G

o v e

rn m

e n

t (e

.g .

te c h

n ic

a l in

te rf

a c e

s , s c h

e d

u le

d

e p

e n

d e

n c ie

s ).

R is

k a

s s o

c ia

te d

w it h

t h

e r

e q

u ir

e m

e n

t fo

r th

e p

ro je

c t

to o

p e

ra te

in

c o

n c e

rt w

it h

o th

e r

p ro

g ra

m s .

In c lu

d e

re la

te d

s c h

e d

u le

a n

d

fu n

d in

g c

o n

c e

rn s .

R is

k i s i n c re

a s e

d i f

th e

s u c c e s s o

f a

p ro

je c t

is d

ir e

c tl y l in

k e

d t

o

th e

s u

c c e s s /

im p

le m

e n

ta ti o

n o

r o

n -g

o in

g m

a in

te n

a n

c e

o f

o th

e r

s y s te

m s .

A re

t h

e i n

te rn

a l a

n d

e x te

rn a

l in

te rf

a c e s i d

e n

ti fi e

d a

n d

w e

ll u

n d

e rs

to o

d ?

A re

d e

p e

n d

e n

c ie

s a

n d

i n

te ro

p e

ra b

ili ty

r e

q u

ir e

m e

n ts

w e

ll d

e fi n

e d

?

Is t

h e

re a

n I

n te

rf a

c e

C o

n tr

o l D

o c u

m e

n t

(I C

D )

fo r

e a

c h

i n

te rf

a c e

/c o

n n

e c ti o

n

b e

tw e

e n

c o

m m

u n

ic a

ti n

g s

y s te

m s t

h a

t s p

e c if ie

s t

h e

d a

ta , fo

rm a

t,

c o

m m

u n

ic a

ti o

n s p

ro to

c o

l, p

e ri

o d

ic it y ,

e x p

e c te

d v

o lu

m e

s , e

tc ?

A re

t h

e re

s ig

n e

d S

e rv

ic e

L e

v e

l A

g re

e m

e n

ts (

S L

A s )

o r

M e

m o

ra n

d a

o f

U n

d e

rs ta

n d

in g

( M

O U

s )

th a

t a

d d

re s s r

e lia

b ili

ty ,

a v a

ila b

ili ty

, s e

c u

ri ty

d a

ta

in te

g ri

ty ,

e tc

?

B -8

T a b le

B -1

. O

rd e r

fo r

A d d re

s s in

g R

is k s a

n d C

o n s id

e ra

ti o n s

R is

k a

re a

R is

k c

a te

g o

ry C

o n

s id

e ra

ti o

n s

S a

m p

le Q

u e

s ti o

n s

T e

c h

n ic

a l

Is s u

e s

4 —

T e

c h

n ic

a l

o b

s o

le s c e

n c e

R is

k a

s s o

c ia

te d

w it h

t h

e l ik

e lih

o o

d o

f th

e t

e c h

n o

lo g

y b

e c o m

in g

o

b s o

le te

b e

c a

u s e

o f

c h

a n

g in

g t

e c h

n o

lo g

y o

r re

q u

ir e

m e

n ts

. In

c lu

d e

te c h

n o

lo g

y s

u p

p o

rt f

ro m

t h

e e

x is

ti n

g s

u p

p lie

r a

n d

a

b ili

ty o

f in

-h o

u s e

s ta

ff t

o m

a n

a g

e s

u p

p o

rt .

R is

k t

h a

t s tr

a te

g ie

s f

o r

a v o

id in

g t

h e

u s e

o f

o u

td a

te d

t e

c h

n ic

a l

re s o

u rc

e s o

v e

r th

e s

y s te

m l if e

a re

n o

t p

la n

n e

d f

o r

a n

d

im p

le m

e n

te d

. A

p la

n f

o r

re g

u la

r te

c h

n o

lo g

y u

p g

ra d

e o

r re

fr e

s h

i s o

n e

w a

y t

o a

v o

id o

b s o

le s c e

n c e

b y e

n s u

ri n

g t

h e

u s e

o

f a

d v a

n c e

d v

e rs

io n

s o

f e

q u

ip m

e n

t o

r s o

ft w

a re

w h

e n

t h

e y

b e

c o

m e

a v a

ila b

le .

Is t

h e

t e

c h

n o

lo g

y “

a g

in g

” a

n d

i n

d a

n g

e r

o f

o b

s o le

s c e

n c e

?

Is t

h e

re a

d a

n g

e r

th a

t th

e d

e v e

lo p

m e

n t

la n

g u

a g

e o

r o

th e

r C

O T

S p

ro d

u c ts

a

re s

o o

ld t

h a

t it w

o u

ld b

e d

if fi c u

lt t

o g

e t

a n

d /o

r m

a in

ta in

a q

u a

lif ie

d t

e a

m

fo r

th e

p ro

je c t

a s w

e ll

a s t

h e

a n

ti c ip

a te

d l if e

c y c le

o f

th e

s y s te

m ?

If t

h is

p ro

je c t

p ro

v id

e s a

n u

p g

ra d

e o

r re

p la

c e

m e

n t

to a

n e

x is

ti n

g s

y s te

m ,

a re

t h

e re

p la

n s f

o r

re ti re

m e

n t

a n

d d

is p

o s it io

n o

f th

e c

u rr

e n

t s y s te

m /s

o lu

ti o

n ?

1 5

— T

e c h

n o

lo g

y R

is k a

s s o

c ia

te d

w it h

t h

e e

x is

ti n

g o

r c h

o s e

n s

o ft

w a

re ,

h a

rd w

a re

, a

n d

n e

tw o

rk r

e lia

b ili

ty ,

m a

in ta

in a

b ili

ty ,

a n

d s

e c u

ri ty

. In

c lu

d e

te c h

n o

lo g

y d

o c u

m e

n ta

ti o

n ,

te s ta

b ili

ty ,

a n

d

a p

p ro

p ri

a te

n e

s s f

o r

th e

f u

n c ti o

n a

l n

e e

d i n

th e

e x is

ti n

g o

r fu

tu re

e

n v ir

o n

m e

n t.

R is

k a

s s o

c ia

te d

w it h

i m

m a

tu ri

ty o

f c o

m m

e rc

ia lly

a v a

ila b

le

te c h

n o

lo g

y .

R is

k o

f te

c h

n ic

a l p

ro b

le m

s /f

a ilu

re s w

it h

a p

p lic

a ti o

n s a

n d

t h

e ir

a

b ili

ty t

o p

ro v id

e p

la n

n e

d a

n d

d e

s ir

e d

t e

c h

n ic

a l fu

n c ti o

n a

lit y .

T

e c h

n ic

a l ri s k a

d d

re s s e s t

h e p

o s s ib

ili ty

t h

a t

th e

a p

p lic

a ti o n

o f

s o

ft w

a re

e n

g in

e e

ri n

g t

h e

o ri

e s ,

p ri

n c ip

le s ,

a n

d t

e c h

n iq

u e

s w

ill

fa il

to y

ie ld

t h

e a

p p

ro p

ri a

te s

o ft

w a

re p

ro d

u c t.

T e

c h

n ic

a l ri s k i s

c o

m p

ri s e

d o

f th

e u

n d

e rl

y in

g t

e c h

n o

lo g

ic a l fa

c to

rs t

h a

t m

a y

c a

u s e

t h

e f

in a

l p

ro d

u c t

to b

e o

v e

rl y e

x p

e n

s iv

e ,

d e

liv e

re d

l a

te o

r o

th e

rw is

e u

n a

c c e

p ta

b le

t o t

h e

c u

s to

m e

r.

Is t

h e

t e

c h

n o

lo g

y b

le e

d in

g e

d g

e ?

Is t

h e

t e

c h

n o

lo g

y c

o n

s id

e re

d m

a tu

re e

n o

u g

h t

o b

e r

e lia

b le

?

A re

t h

e re

m u

lt ip

le v

e n

d o

rs t

h a

t a

re a

b le

t o

p ro

v id

e t

h e

s u

p p

o rt

/s e

rv ic

e s

n e

e d

e d

o n

t h

is t

e c h

n o

lo g

y ?

D o

t h

e t

e a

m m

e m

b e

rs h

a v e

a p

p ro

p ri

a te

e x p

e rt

is e

?

Is t

h e

t e

c h

n o

lo g

y m

a tu

re e

n o

u g

h ?

6 —

R e

lia b

ili ty

o f

s y s te

m s

R is

k a

s s o

c ia

te d

w it h

t h

e d

e fi n

e d

r e

s p

o n

s e

t im

e a

n d

th

ro u

g h

p u

t re

q u

ir e

m e

n ts

a s n

e e

d e

d a

n d

e x p

e c te

d .

In c lu

d e

s y s te

m c

o n

ti n

g e

n c y p

la n

s ,

c o

n ti n

u it y o

f o

p e

ra ti o

n s p

la n

s ,

d is

a s te

r re

c o

v e

ry p

la n

s a

n d

te s ts

o f

th o

s e

p la

n s .

R is

k o

f in

a b ili

ty o

f th

e s

y s te

m t

o p

ro v id

e p

la n

n e

d a

n d

d e

s ir

e d

fu

n c ti o

n a

lit y .

D o

e s t

h e

p ro

p o

s e

d s

o lu

ti o

n p

ro v id

e a

s u

ff ic

ie n

tl y r

o b

u s t a

n d

/o r

re d

u n

d a

n t

s o

lu ti o

n t

h a

t s y s te

m a

n d

d a

ta a

v a

ila b

ili ty

r e

q u

ir e

m e

n ts

a re

m e

t?

A re

p h

y s ic

a l a

n d

I T

s e

c u

ri ty

m e

a s u

re s s

u ff

ic ie

n t

to e

n s u

re t

h e

s e

c u

ri ty

o f

th e

I T

s y s te

m a

n d

t h

e i n

te g

ri ty

o f

th e

d a

ta ?

B -9

T a b le

B -1

. O

rd e r

fo r

A d d re

s s in

g R

is k s a

n d C

o n s id

e ra

ti o n s

R is

k a

re a

R is

k c

a te

g o

ry C

o n

s id

e ra

ti o

n s

S a

m p

le Q

u e

s ti o

n s

T e

c h

n ic

a l

Is s u

e s

1 4

— D

a ta

/ in

fo rm

a ti o

n R

is k a

s s o

c ia

te d

w it h

t h

e c

la ri ty

, c o

m p

le te

n e

s s ,

v a

lid it y ,

s o

u rc

e s ,

a n

d f

e a

s ib

ili ty

o f

d a

ta r

e q

u ir

e m

e n

ts .

In c lu

d e

d a

ta

in te

rf a

c e

a n

d d

a ta

c o

n v e

rs io

n c

o m

p le

x it ie

s .

In c lu

d e

d a

ta

c o

lle c ti o

n ,

s to

ra g

e ,

in te

g ri

ty , a

n d

a v a

ila b

ili ty

.

R is

k a

s s o

c ia

te d

w it h

t h

e l o s s /m

is u

s e

o f

d a

ta o

r in

fo rm

a ti o

n ,

ri s k o

f in

c re

a s e

d b

u rd

e n

o n

c it iz

e n

s a

n d

b u

s in

e s s e

s d

u e

t o

d

a ta

c o

lle c ti o

n r

e q

u ir

e m

e n

ts i f

th e

a s s o c ia

te d

b u

s in

e s s

p ro

c e

s s e

s o

r th

e p

ro je

c t

re q

u ir

e a

c c e

s s t

o d

a ta

f ro

m o

th e

r s o

u rc

e s (

fe d

e ra

l, s

ta te

a n

d /o

r lo

c a

l a

g e

n c ie

s ).

H a

s a

P ri

v a

c y I

m p

a c t A

s s e

s s m

e n

t (P

IA )

b e

e n

p e

rf o

rm e

d o

r re

v is

it e

d i n

t h

e

la s t

2 y

e a

rs ?

If a

n y P

e rs

o n

a lly

I d

e n

ti fi a

b le

I n

fo rm

a ti o

n (

P II

) is

c o

lle c te

d , h

a s t

h e

n e

e d

f o

r th

a t

in fo

rm a

ti o

n b

e e

n e

s ta

b lis

h e

d ?

H a

v e

t h

e r

e q

u ir

e m

e n

ts f

o r

th e

a n

a ly

s is

, re

p o

rt in

g a

n d

o r

o th

e r

u s e

o f

th is

d

a ta

b e

e n

w e

ll e

s ta

b lis

h e

d ?

If m

u lt ip

le s

o u

rc e

s o

f P

II a

re c

o m

b in

e d

, h

a s t

h a

t b

e e

n a

n n

o u

n c e

d i n

a

S y s te

m o

f R

e c o

rd s N

o ti c e

( S

O R

N )?

A re

p ro

c e

s s e

s a

n d

s e c u

ri ty

c o

n tr

o ls

i n

p la

c e

t o

e n

s u

re a

u th

o ri

z e

d u

s e

rs

h a

v e

a n

e e

d f

o r

a c c e

s s t

o t

h e

s y s te

m /d

a ta

a n

d t

h a

t th

e u

s e

rs a

re g

ra n

te d

o

n ly

t h

e (

ro le

-b a

s e

d )

a c c e

s s t h

e y n

e e

d ?

A re

t h

e re

c o

n tr

o ls

i n

p la

c e

t o p

re v e

n t

u n

a u

th o

ri z e

d a

c c e

s s /v

ie w

in g

, c o

m b

in a

ti o

n ,

a n

d /o

r a

n a

ly s is

o f

th e

P II

?

A re

d a

ta b

e in

g s

u p

p lie

d b

y t

ru s te

d s

o u

rc e

s ?

Is t

h e

re a

w a

y t

o c

h e

c k t

h e

i n

te g

ri ty

a n

d /o

r v a

lid it y o

f th

e d

a ta

? A

re

in te

rf a

c e s a

n d

d a

ta f

e e

d s /p

u lls

w e

ll d

e fi n

e d

?

Is t

h e

re a

d a

ta m

ig ra

ti o

n p

la n

f o

r tr

a n

s it io

n o

f d

a ta

f ro

m l e

g a

c y t

o

re p

la c e

m e

n t

s y s te

m (s

)?

Is t

h e

re a

n a

p p

ro v e

d r

e c o

rd s m

a n

a g

e m

e n

t p

la n

?

B -1

0

T a b le

B -1

. O

rd e r

fo r

A d d re

s s in

g R

is k s a

n d C

o n s id

e ra

ti o n s

R is

k a

re a

R is

k c

a te

g o

ry C

o n

s id

e ra

ti o

n s

S a

m p

le Q

u e

s ti o

n s

S e

c u

ri ty

1

7 —

S e

c u

ri ty

R is

k a

s s o

c ia

te d

w it h

t h

e s

e c u

ri ty

/v u

ln e

ra b

ili ty

o f

s y s te

m s ,

w e

b s it e

s ,

in fo

rm a

ti o

n a

n d

n e

tw o

rk s ;

ri s k o

f in

tr u

s io

n s a

n d

c o

n n

e c ti v it y t

o o

th e

r (v

u ln

e ra

b le

) s y s te

m s

R is

k a

s s o

c ia

te d

w it h

t h

e m

is u

s e

( c ri

m in

a l/ fr

a u

d u

le n

t) o

f in

fo rm

a ti o

n

R is

k a

s s o

c ia

te d

w it h

t h

e v

a lid

it y a

n d

e ff

e c ti v e

n e

s s o

f th

e

o rg

a n

iz a

ti o

n s

e c u

ri ty

p la

n ,

th e

p la

n ’s

c o

m p

lia n

c e

w it h

N IS

T

re q

u ir

e m

e n

ts ,

a s s o

c ia

te d

p la

n s t

o c

e rt

if y a

n d

a c c re

d it t

h e

I T

s y s te

m p

ri o

r to

i m

p le

m e

n ta

ti o

n ,

a n

d t

h e

o rg

a n

iz a

ti o

n ’s

a b

ili ty

to

i m

p le

m e

n t

th e

p la

n .

[N o

te :

T h

is r

is k c

a te

g o

ry m

u s t

in c lu

d e

i n

t h

e r

is k d

e s c ri p

ti o

n

th e

l e

v e

l o

f ri s k (

h ig

h ,

m e

d iu

m ,

o r

lo w

) a

n d

w h

a t

a s p

e c t

o f

s e

c u

ri ty

d e

te rm

in e

s t

h e

l e

v e

l o

f ri

s k ,

e .g

. n

e e

d f

o r

c o

n fi d

e n

ti a

lit y o

f in

fo rm

a ti o

n a

s s o

c ia

te d

w it h

t h

e

p ro

je c t/

s y s te

m ,

a v a

ila b

ili ty

o f

th e

i n

fo rm

a ti o

n o

r s y s te

m ,

o r

re lia

b ili

ty o

f th

e i n fo

rm a

ti o

n o

r s y s te

m .]

A re

p h

y s ic

a l s e c u

ri ty

c o

n tr

o ls

i n

p la

c e

?

A re

a d

e q

u a

te p

e rs

o n

n e

l c h

e c k s i n

p la

c e

?

Is t

h e

re r

o le

-b a

s e

d a

c c e

s s c

o n

tr o

l a

n d

s e

p a

ra ti o

n o

f re

s p o

n s ib

ili ti e s t

o

e n

s u

re a

d e

q u

a te

i n

fo rm

a ti o

n s

e c u

ri ty

c o

n tr

o ls

a re

i n

p la

c e

?

D o

t h

e C

O T

S p

ro d

u c ts

p ro

v id

e t

o o

ls t

h a

t s u

p p

o rt

F IS

M A

r e

q u

ir e

m e

n ts

?

D o

e s /w

ill t

h e

s y s te

m h

a v e

c u

rr e

n t

C e

rt if ic

a ti o

n a

n d

A c c re

d it a

ti o

n (

C &

A )

a n

d /o

r A

u th

o ri

ty T

o O

p e

ra te

( A

T O

)?

A re

i n

te rf

a c in

g s

y s te

m s s

u b

je c t

to s

e c u

ri ty

c h

e c k s a

n d

a c c e

s s c

o n

tr o

ls ?

8 —

S u

re ty

(a s s e

t p

ro te

c ti o

n )

R is

k a

s s o

c ia

te d

w it h

t h

e i m

p a

c t

o f

lo s s ,

d a

m a

g e

, o

r th

e ft

a n

d

th e

a d

e q

u a

c y o

f p

h y s ic

a l p

ro te

c ti o

n ,

c o

n ti n

u it y o

f o

p e

ra ti o n

s ,

a n

d d

is a

s te

r re

c o

v e

ry p

la n

s ,

a n

d o

p e

ra ti o

n s f

o r

th e

s y s te

m .

R is

k a

s s o

c ia

te d

w it h

t h

e n

a tu

re ,

v a

lu e

, a

n d

s e

c u

ri ty

o f

p h

y s ic

a l

a s s e

ts (

g o

v e

rn m

e n

t o

r c o

n tr

a c to

r o

w n

e d

) a

n d

t h

e c

o n

ti n

g e

n c y

p la

n s t

o p

ro te

c t

th e

p ro

je c t

in t

h e

e v e

n t

o f

a s s e

t lo

s s o

r fa

ilu re

.

A re

t h

e re

a d

e q

u a

te c

h e

c k s /c

o n

tr o

ls t

o e

n s u

re d

a ta

i n

te g

ri ty

a n

d a

p p

ro p

ri a

te l e

v e

l o

f a

c c e

s s c

o n

tr o

l?

A re

t h

e s

e le

c te

d s

y s te

m s /t

e c h

n o

lo g

ie s r

e lia

b le

?

A re

p ro

c e

s s e

s i n

p la

c e

t o

e n s u

re t

ra n

s fe

r o f

d a

ta i s r

e lia

b le

, a

n d

t o

e n

s u

re

th a

t tr

a n

s m

it te

d /t

ra n

s fe

rr e

d d

a ta

r e

a c h

e s o

n ly

t h

e i n

te n

d e

d r

e c ip

ie n

t s y s te

m (s

)?

1 8

— P

ri v a

c y

R is

k a

s s o

c ia

te d

w it h

t h

e v

u ln

e ra

b ili

ty o

f th

e c

o lle

c ti o

n ,

u s e ,

s to

ra g

e ,

tr a

n s m

is s io

n ,

a n

d d

is p

o s a

l o f

p e

rs o

n a

lly i d

e n

ti fi a b

le

o r

p ro

p ri

e ta

ry i n

fo rm

a ti o

n .

R is

k a

s s o

c ia

te d

w it h

t h

e c

o m

p lia

n c e

w it h

t h

e P

ri v a

c y A

c t a

n d

th

e p

ri v a

c y i m

p a

c t

a s s e

s s m

e n

t. I

n c lu

d e

th e

e ff

e c ti v e

n e

s s a

n d

c o

s t

o f

th e

p ro

je c t’ s d

o c u

m e

n te

d s

ta n

d a

rd s f

o r

s u

b m

is s io

n a

n d

u

s e

o f

p e

rs o

n a l in

fo rm

a ti o

n .

H a

s a

P ri

v a

c y I

m p

a c t A

s s e

s s m

e n

t (P

IA )

b e

e n

p e

rf o

rm e

d ?

If t

h is

i s a

p ro

je c t

re la

te d

t o

a l e

g a

c y s

y s te

m ,

h a

s t

h e

P IA

b e

e n

r e

v is

it e

d i n

th

e l a

s t

2 y

e a

rs ?

D o

e s /w

ill t

h e

s y s te

m c

o n

ta in

P e

rs o

n a

lly I

d e

n ti fi a

b le

I n

fo rm

a ti o

n (

P II

) o

f th

e

g e

n e

ra l p

u b

lic o

r o f

e m

p lo

y e

e s ?

B -1

1

T a b le

B -1

. O

rd e r

fo r

A d d re

s s in

g R

is k s a

n d C

o n s id

e ra

ti o n s

R is

k a

re a

R is

k c

a te

g o

ry C

o n

s id

e ra

ti o

n s

S a

m p

le Q

u e

s ti o

n s

S u

m m

a ry

o f

R is

k 1

1 —

O v e

ra ll

ri s k o

f in

v e

s tm

e n

t fa

ilu re

R is

k a

s s o

c ia

te d

w it h

a n

y r

is k s ,

in c lu

d in

g o

th e

r ri

s k s n

o t

a lr

e a

d y d

is c u

s s e

d ,

th a

t h

a v e t

h e

g re

a te

s t

p o

te n

ti a

l fo

r c a u

s in

g

s y s te

m f

a ilu

re o

r th

a t

h a

v e

a n

e g

a ti v e

i m

p a

c t

re s u

lt in

g f

ro m

th

e o

c c u

rr e

n c e

o f

o n

e o

r m

o re

i d

e n

ti fi e

d o

r u

n id

e n

ti fi e

d r

is k s ,

le a

d in

g t

o c

a ta

s tr

o p

h ic

r e

s u

lt s f

o r

th e

p ro

je c t.

It

r e

fe rs

t o

t h

e

a g

g re

g a

ti o

n o

f id

e n

ti fi e

d r

is k s a

s s o c ia

te d

w it h

t h is

i n it ia

ti v e

a n

d

th e

l ik

e lih

o o

d (

p ro

b a

b ili

ty a

n d

i m

p a

c t)

t h

a t

o n

e o

r m

o re

o

c c u

rr e

n c e

s o

f ri

s k w

ill c

a u

s e

t h

is i n it ia

ti v e

t o

f a

il.

It a

ls o

in

c lu

d e s t

h e

r is

k t

h a

t u

n id

e n

ti fi e

d a

c ti v it ie

s o

c c u

r th

a t

le a

d t

o

th e

p ro

je c t

b e

c o

m in

g o

b s o

le te

. In

c lu

d e

t h

e e

ff e

c ti v e

n e

s s a

n d

u

s e

o f

th e

r is

k m

a n

a g

e m

e n

t p

la n

.

Is t

h e

re a

b u

s in

e s s n

e e

d f

o r

th is

p ro

je c t?

D o

e s t

h e

p ro

d u

c t/

s y s te

m s

u p

p o

rt t

h e

b u

s in

e s s g

o a

ls a

n d o

b je

c ti v e

s ?

I s

th is

p ro

je c t

a b

u s in

e s s p

ri o

ri ty

?

H a

s t

h e

s p

o n

s o

r/ b

u s in

e s s o

w n

e r

b e

e n

i d

e n

ti fi e

d ?

D o

e s t

h e

s p

o n

s o

r/ b

u s in

e s s o

w n

e r

h is

/h e

r re

c o

g n

iz e

r o

le a

n d

re

s p

o n

s ib

ili ti e s w

it h

t h

e p

ro je

c t?

Is t

h e

re s

u ff

ic ie

n t

s u

p p

o rt

f o

r c o

m p

le ti n

g t

h is

e ff

o rt

a n

d b

a c k in

g t

o g

e t

a llo

c a

ti o

n o

f fu

n d

s ?

A re

t h

e re

p o

lit ic

a l is

s u

e s t

h a

t m

ig h

t a

ff e c t

th e

d ir

e c ti o

n a

n d

/o r

p ri

o ri

ty o

f th

is e

ff o

rt ?

A re

t h

e r

e q

u ir

e m

e n

ts w

e ll

u n

d e

rs to

o d

a n

d w

e ll

m a

n a

g e

d ?

Is t

h e

d e

s ig

n w

e ll

d o

c u

m e

n te

d ?

Is t

h e

t e

s t

p la

n w

e ll-

d o

c u

m e

n te

d ?

D o

t h

e t

e s ts

m a

p t

o t

h e

r e

q u

ir e

m e

n ts

?

Is t

h e

re a

s o

u n

d i m

p le

m e

n ta

ti o

n p

la n

?

Is t

h e

re a

s o

u n

d t

ra in

in g

p la

n ?

A re

t h

e re

a d

e q

u a

te t

o o

ls f

o r

e x e

c u

ti n

g t

h e

p ro

je c t,

f o

r re

q u

ir e

m e

n ts

a

n a

ly s is

a n

d m

a n

a g

e m

e n

t, d

e s ig

n ,

d e

v e

lo p

m e

n t,

t e

s t,

im

p le

m e

n ta

ti o

n /d

e p

lo y m

e n

t?

D o

t e

a m

m e

m b

e rs

h a

v e

a d

e q

u a

te t

ra in

in g

t o

u s e

t h

e t

o o

ls a

n d

p e

rf o

rm

th e

ir j o

b /r

o le

?

A re

r o

le s a

n d

r e

s p

o n

s ib

ili ti e

s w

it h

in t

h e

p ro

je c t

te a

m c

le a

r?

Is t

h e

re a

t ra

in in

g p

la n

?

D o

k e

y i n

d iv

id u

a ls

h a

v e

b a

c k u

p /s

h a

d o

w p

e rs

o n

n e

l?

Is t

h e

re a

n y s

u c c e

s s io

n p

la n n

in g

?

B-12

Ask the Right People

WHOM TO ASK

Whose opinion of project risk is the best to solicit? The answer is anyone who has

a stake in the project’s success. No one group of people is best for every project

or every life-cycle phase of a single project. The appropriate people include

individuals selected from this list:

Project or investment management

Project staff

Organization or operating unit security officer

Organization or operating unit and/or IHS chief enterprise architect

Agency support staff such as the budget officer and the contracting officer

Contractor management

Contractor staff

Users or potential users

Senior functional management and senior technical management

Other members of the Integrated Project Team (IPT)

Other stakeholders that have an interest in the success of the project and a

perspective about risk.

Do not exclude people because they are not supporters of the project or because

you think you already understand their opinions. These may be the most

important people to include. Getting potential real or perceived risks out in the

open early is often the best way to manage or mitigate them.

It is best to gather opinions of risk in an open forum so all players can hear and

learn from the ideas of others. For this reason, a facilitated workshop is

recommended.

B-13

DON’T ATTEMPT TOO MUCH

While a group is gathered to identify and evaluate project risk, it may be tempting

to try to cover too much ground—for example, to also develop risk management

strategies and discuss risk management action steps. These are best postponed

until a later meeting or until the risk owner is ready to discuss them. A more

limited agenda works best. Suggestions for an agenda are listed below:

Describe the purpose of risk management and the risk management model.

Introduce the risk categories.

Address each risk category. You may not have a risk in every category;

however, every category should be reviewed. State each risk as a cause-

and-effect statement.

When all risks have been identified, consider them in their entirety. Then

evaluate each risk—one at a time—for its potential impact on the project

and the likelihood of occurrence as described in your risk management

plan.

If time permits, consider risk management strategies for the most serious risks. If

appropriate, assign risks to risk owners as described in the risk management plan.

A sample risk inventory and assessment, the results of conducting an open and

comprehensive risk review, is presented in Appendix C.

C-1

APPENDIX C. SAMPLE RISK INVENTORY AND

ASSESSMENT

This Appendix provides a sample risk inventory and assessment.

When entered into the HHS project and Portfolio Management Tool, Oracle

Primavera ProSight, a unique identifier for each risk identifier will be assigned by

the tool

Within a risk category, there can be more than one risk (see risk category 4)

Technical Obsolescence, for example).

C -2

In fr

a re

d T

er o si

s D

et ec

ti o n

S y st

em (

IT D

S )

R is

k I

n v en

to ry

a n

d A

ss es

sm en

t

A s

o f

F eb

ru a ry

1 4 , 2 0 1

3

R is

k N

a m

e D

a te

Id

e n

ti fi

e d

R is

k C

a te

g o

ry D

e s c ri

p ti

o n

P ro

b a

b il

it y

o f

O c c u

rr e n

c e

Im p

a c t

R is

k

M a

g n

it u

d e

R is

k O

w n

e r

M it

ig a

ti o

n P

la n

D a

te a

n d

S ta

tu s

S ch

e d u le

d a ta

1 0 J

a n

2 0 1 3

1 )

S ch

e d u le

If t

h e p

ro je

ct m

a n a g e r

d o e s

n o t

h a v e t

h e a

p p ro

p ri a te

in

fo rm

a ti o n t

o t

ra ck

a ct

u a l

p ro

g re

ss a

g a in

st p

la n n e d

m ile

st o n e s,

t h e n t

h e p

ro je

ct

m a y f

a ll

b e h in

d s

ch e d u le

.

L o w

L o w

1 N

o n e r

e q u ir e d .

R is

k i s

m in

im a l.

S ch

e d u le

i ss

u e s

in v o lv

in g s

y st

e m

m

o d if ic

a ti o n a

re m

a n a g e d t

h ro

u g h

re g u la

r w

e e k ly

t e a m

m e e ti n g s.

1 0 J

a n 2

0 1 3 :

R is

k i n it ia

lly

id e n ti fi e d .

In it ia

l co

st

d a ta

1 0 J

a n

2 0 1 3

2 )

In it ia

l C o st

s If

t h e i n it ia

l co

st e

st im

a te

i s

n o t

a cc

u ra

te , th

e n t

h e l if e cy

cl e c

o st

s a n d f

u tu

re e

st im

a te

s w

ill n

o t

b e

a cc

u ra

te .

L o w

L o w

1 N

o n e r

e q u ir e d .

R is

k i s

m in

im a l.

G S A p

u rc

h a se

.

1 0 J

a n 2

0 1 3 :

R is

k i n it ia

lly

id e n ti fi e d .

1 6 J

a n

2 0 1 3 :

P u rc

h a se

co

m p le

te d .

L if e -c

y cl

e c

o st

d a ta

1 0 J

a n

2 0 1 3

3 )

L if e -c

y cl

e C

o st

s If

l if e -c

y cl

e c

o st

s a re

e st

im a te

d

in co

rr e ct

ly , th

e n p

ro je

ct m

a y

n o t

b e c

o m

p le

te d w

it h in

t h e

sp e ci

fi e d b

u d g e t.

L o w

L o w

1 N

o n e r

e q u ir e d .

R is

k i s

m in

im a l.

C O

T S p

ro d u ct

; G

S A p

u rc

h a se

.

S y st

e m

i s

p ri m

a ri ly

i n t

h e s

te a d y -

st a te

p h a se

o f

it s

lif e c

y cl

e a

n d

D M

E c

o st

s a re

r e la

ti v e ly

l o w

. T h o se

r e q u e st

in g e

n h a n ce

m e n ts

p a rt

ic ip

a te

i n f

u n d in

g j u st

if ic

a ti o n s.

1 0 J

a n 2

0 1 3 :

R is

k i n it ia

lly

id e n ti fi e d .

M a in

te n a n ce

co

st s

1 0 J

a n

2 0 1 3

4 )

T e ch

n ic

a l

o b so

le sc

e n ce

If t

h e I

n v e st

m e n t

re lie

s o n

te ch

n o lo

g y t

h a t

is n

o t

o p e n o

r w

id e ly

s u p p o rt

e d , th

e n t

h e

m a in

te n a n ce

m a y b

e co

m e c

o st

- p ro

h ib

it iv

e .

L o w

L o w

1 N

o n e r

e q u ir e d .

R is

k i s

m in

im a l.

A u to

-r e fr

e sh

w it h c

o n tr

a ct

o r.

1 0 J

a n 2

0 1 3 :

R is

k i n it ia

lly

id e n ti fi e d .

O ra

cl e

m ig

ra ti o n

1 0 J

a n

2 0 1 3

4 )

T e ch

n ic

a l

o b so

le sc

e n ce

If t

h e s

ta n d a rd

O ra

cl e m

ig ra

ti o n

p a th

i s

n o t

fo llo

w e d , th

e s

y st

e m

co

u ld

b e co

m e t

e ch

n o lo

g ic

a lly

o b so

le te

, m

o re

e x p e n si

v e t

o

m a in

ta in

, a n d /o

r lo

se

fu n ct

io n a lit

y .

L o w

L o w

1 N

o n e r

e q u ir e d

T h e O

ra cl

e c

o n tr

a ct

o r

a tt

e n d s

w e e k ly

I T D

S te

a m

m e e ti n g s

a n d

re p o rt

s o n O

ra cl

e t

e ch

n o lo

g y

ch a n g e i ss

u e s.

P ro

je ct

p e rs

o n n e l

h a v e e

x te

n si

v e e

x p e ri e n ce

w it h t

h e

O ra

cl e p

ro d u ct

s.

1 0 J

a n 2

0 1 3 :

R is

k i n it ia

lly

id e n ti fi e d .

C -3

In fr

a re

d T

er o si

s D

et ec

ti o n

S y st

em (

IT D

S )

R is

k I

n v en

to ry

a n

d A

ss es

sm en

t

A s

o f

F eb

ru a ry

1 4 , 2 0 1

3

R is

k N

a m

e D

a te

Id

e n

ti fi

e d

R is

k C

a te

g o

ry D

e s c ri

p ti

o n

P ro

b a

b il

it y

o f

O c c u

rr e n

c e

Im p

a c t

R is

k

M a

g n

it u

d e

R is

k O

w n

e r

M it

ig a

ti o

n P

la n

D a

te a

n d

S ta

tu s

D e si

g n

co m

p le

x it y

1 0 J

a n

2 0 1 3

5 )

F e a si

b ili

ty If

t h e i m

p le

m e n ta

ti o n o

f th

e

d e si

g n i s

d if fi cu

lt o

r im

p o ss

ib le

to

t e st

, th

e p

ro je

ct m

a y b

e

a cc

e p te

d w

h e n i t

d o e s

n o t

m e e t

u se

r- d e fi n e d f

u n ct

io n a l

re q u ir e m

e n ts

.

L o w

L o w

1 N

o n e r

e q u ir e d .

R is

k i s

m in

im a l.

C O

T S p

ro d u ct

; G

S A p

u rc

h a se

. 1 0 J

a n 2

0 1 3 :

R is

k i n it ia

lly

id e n ti fi e d .

S y st

e m

re

st o ra

ti o n

1 0 J

a n

2 0 1 3

6 )

R e lia

b ili

ty o

f sy

st e m

s If

t h e s

ta ff h

a s

lim it e d e

x p e rt

is e

w it h t

e ch

n o lo

g y ,

th e n t

h e a

b ili

ty

to q

u ic

k ly

r e st

o re

a n d r

e p a ir

sy st

e m

s co

u ld

b e i m

p a ct

e d .

L o w

L o w

1 N

o n e r

e q u ir e d .

R is

k i s

m in

im a l.

C O

T S p

ro d u ct

; m

e e ts

b u si

n e ss

n e e d .

1 0 J

a n 2

0 1 3 :

R is

k i n it ia

lly

id e n ti fi e d .

S o ft

w a re

/ h a rd

w a re

re

lia b ili

ty

1 0 J

a n

2 0 1 3

6 )

R e lia

b ili

ty o

f sy

st e m

s If

t h e s

o ft

w a re

p la

ce s

u n e x p e ct

e d s

tr e ss

o n t

h e

h a rd

w a re

a n d o

th e r

in fr

a st

ru ct

u re

, th

e s

y st

e m

m a y

fa il.

L o w

L o w

1 N

o n e r

e q u ir e d

T h e s

o ft

w a re

, h a rd

w a re

, a n d

in fr

a st

ru ct

u re

h a v e p

ro v e n t

h e ir

a b ili

ty t

o s

u p p o rt

t h e s

y st

e m

. T h e

sy st

e m

h a s

a c

o n ti n u it y o

f o p e ra

ti o n s

p la

n a n d a

d is

a st

e r

re co

v e ry

s it e . S y st

e m

r e lia

b ili

ty h

a s

n o t

b e e n a

n i ss

u e .

1 0 J

a n 2

0 1 3 :

R is

k i n it ia

lly

id e n ti fi e d .

S h a re

d s

y st

e m

1 0 J

a n

2 0 1 3

6 )

R e lia

b ili

ty o

f sy

st e m

s If

a c

h a n g e i s

m a d e i n t

h e

h a rd

w a re

o r

so ft

w a re

t o

a cc

o m

m o d a te

o th

e r

w o rk

w

it h o u t

e v a lu

a ti n g i ts

i m

p a ct

o n

a ll

sy st

e m

s, I

T D

S m

a y f

a il.

M e d iu

m L o w

2 N

o n e r

e q u ir e d

S y st

e m

i s

p ri m

a ri ly

i n t

h e s

te a d y -

st a te

p h a se

o f

it s

lif e c

y cl

e a

n d

h a rd

w a re

a n d s

o ft

w a re

c h a n g e s

a re

c o o rd

in a te

d a

m o n g a

ff e ct

e d

p a rt

ie s.

R is

k i s

co n ti n u o u s

a n d w

ill

b e r

e g u la

rl y m

o n it o re

d .

1 0 J

a n 2

0 1 3 :

R is

k i n it ia

lly

id e n ti fi e d .

P la

n n e d

in te

ro p e ra

ti o n

1 0 J

a n

2 0 1 3

7 )

D e p e n d e n ci

e s/

in

te ro

p e ra

b ili

ty If

t h e i n te

rn a l a n d e

x te

rn a l

sy st

e m

d e p e n d e n ci

e s

a n d a

b ili

ty

to i n te

ro p e ra

te a

re n

o t

a d e q u a te

ly p

la n n e d f

o r,

t h e

sy st

e m

m a y n

o t

b e a

s e ff

e ct

iv e

a n d c

o st

s co

u ld

i n cr

e a se

.

L o w

L o w

1 N

o n e r

e q u ir e d .

R is

k i s

m in

im a l.

N o d

e p e n d e n ci

e s

a n d

in te

ro p e ra

b ili

ty r

is k s

h a v e b

e e n

id e n ti fi e d . IT

D S

is a

s ta

n d -a

lo n e

a p p lic

a ti o n .

1 0 J

a n 2

0 1 3 :

R is

k i n it ia

lly

id e n ti fi e d .

A ss

e t

p ro

te ct

io n

1 0 J

a n

2 0 1 3

8 )

S u re

ty

If t

h e f

ix e d , in

te lle

ct u a l, a

n d

h u m

a n a

ss e ts

a re

n o t

p ro

te ct

e d

a d e q u a te

ly f

ro m

h a rm

, th

e n t

h e

in v e st

m e n t

m a y b

e i m

p a ct

e d .

L o w

L o w

1 N

o n e r

e q u ir e d .

R is

k i s

m in

im a l.

1 0 J

a n 2

0 1 3 :

R is

k i n it ia

lly

id e n ti fi e d .