Risk assumption is an acknowledgment of the existence of a
particular risk situation and a conscious decision to accept the associated
level of risk, without engaging in any special efforts to control it. However,
a general cost and schedule reserve may be set aside to deal with any problems
that may occur as a result of various risk assumption decisions. This method
recognizes that not all identified program risks warrant special handling; as
such, it is most suited for those situations that have been classified as low
risk. The key to successful risk assumption is twofold:
- Identify the resources (time, money, people, etc.) needed to overcome a
risk if it materializes. This includes identifying the specific management
actions (such as retesting, additional time for further design activities)
that may occur.
- Ensure that necessary administrative actions are taken to identify a
management reserve to accomplish those management actions.
Risk-handling options have broad cost implications. The magnitude of these
costs are circumstance-dependent. The approval and funding of handling options
should be part of the process that establishes the program cost and
performance goals. This should normally be done by the Program-Level Risk
Management IPT or Risk Management Board. The selected handling option should
be included in the programís acquisition strategy.
Once the acquisition strategy includes riskhandling approaches, the PMO can
derive the schedule and identify cost, schedule, and performance, impacts to
the basic program.