2.7.2 Risk-Handling Process
The risk-handling phase must be compatible with the risk management plan
and any additional guidance the PM provides. Paragraph 5.3
describes a technique that concentrates on planning. A critical part of
planning involves refining and selecting of the most appropriate handling
The IPTs that evaluate the handling options may use the following criteria
as a starting point for assessment:
- Can the option be feasibly implemented and still meet the user’s
- What is the expected effectiveness of the handling option in reducing
program risk to an acceptable level?
- Is the option affordable in terms of dollars and other resources (e.g.,
use of critical materials, test facilities, etc.)?
- Is time available to develop and implement the option, and what effect
does that have on the overall program schedule?
- What effect does the option have on the system’s technical
Risk-handling options can include risk control, risk avoidance, risk
assumption, and risk transfer. An acronym used to identify these options is
“CAAT.” Although the control riskhandling option is commonly used in defense
programs, it should not automatically be chosen. All four options should be
evaluated and the best one chosen for a given risk