This technique provides a means to prioritize the risks present in a
program. It is a part of risk analysis. The prioritized list provides the
basis for developing handling plans, preparing a handling task sequence list,
and allocating handling resources.
When using this technique, PMs establish definitive criteria to evaluate
the risks, such as, probability (probability/likelihood) of failure,
(PF), and consequence/impact of failure (CF), along with
any other factors considered appropriate. The risks are evaluated using
qualitative expert judgment and multi-voting methods to prioritize and
aggregate risks. (See References-SEI, Continuous Risk Management,
1996, for a discussion of multi-voting methods.) A qualitative approach using
subject-matter experts is generally preferred in this technique because of the
tendency to rely on ordinal values to describe PF, CF
and the inherent inaccuracies resulting from any attempts to use quantifiable
methods derived from raw (uncalibrated) ordinal scales.
This technique should be used appropriately during the CR and TD Phases,
and the SI and SD parts of the SDD Phase; at the conclusion of a major risk
assessment undertaking; when there has been a significant change in the
acquisition strategy; when risk monitoring indicates significant changes in
the status of a number of risks, and prior to a milestone review.
The PMO risk management coordinator (if assigned) may function as a
facilitator and support the program IPT in applying this