This technique identifies those risks associated with a given system
concept and design. The difference between the process (DoD 4245.7-M)
technique and this approach is that DoD 4245.7-M addresses the contractor’s
engineering and manufacturing processes and this technique focuses on
the resulting product. This technique is used to identify and analyze risks in
the following critical risk areas: design and engineering, technology,
logistics, production, concurrency, plus others as needed for both hardware
The WBS is the starting point to describe contract work to be done and the
resulting product and is the basis for determining risk events in each
critical risk area. The risk events—events that might have a detrimental
impact on the system, subsystems, or components—are evaluated to identify and
characterize specific risks ratings and prioritization.
This technique should be used shortly after the completion of the prime
contractor’s WBS. Thereafter, it should be used regularly up to the start of
production. The technique can be used independently or in conjunction with
other risk assessment techniques, such as the Process (DoD 4245.7-M) Risk
Assessment technique. It may, if appropriate, also be used in conjunction with
the Integrated Baseline Review (IBR), which is conducted within 6 months of
contract award. A website is also available at http://www.acq.osd.mil/pm/ibrmats/ibrmats.htm,
which discusses the IBR Process.
To apply this technique, joint Government and industry evaluation teams
should examine the appropriate WBS levels in each Sub-Tier IPTs product area.
If necessary, complementary industry-only teams may take an in-depth look at
selected areas at lower WBS levels. At times, it may be desirable to include
outside industry experts on the teams to aid in the examination of specific
WBS elements or functional areas.