Original Date: 04/28/1995
Revision Date: 01/18/2007
Information : Risk Management
Risk Management is one of 12 Lockheed Martin-developed Best Practice activities for continuous improvement. Risk Management identifies, assesses, and abates factors which could reasonably result in not attaining cost, performance, or schedule. The company believes that by applying risk management techniques, up-front planning and programmatic trade-offs can be planned to ensure executable programs. Also, the program technical, schedule, and cost issues can be integrated, and quick reaction capability to “what ifs” can be provided to minimize programmatic surprises.
The risk management process has been developed for the Integrated Product Teams (IPTs) to identify high risk areas early enough to resolve. Old risk management practices employed by Lockheed Martin separated schedules, events, and issues instead of integrating with each other, resulting in a less-than-adequate analysis of the risk involved when planning a program. Refining this risk management process, Lockheed Martin assembled its ability to integrate systems, the attributes of the already existing risk management techniques, and the Defense System Management College tools for risk management. The resultant tool is an integrated risk management tool based on relationships and effects of each aspect of a program. The tool enables a standard approach to risk analysis, tracking, and reporting.
The newly refined integrated risk management process is currently in its final stages of implementation and has not yet established a track record. However, there are early indications of an improved and cost effective process as a result of Lockheed Martin’s continuous improvement efforts.
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