2.8 RISK MONITORING
The monitoring process systematically tracks and
evaluates the effectiveness of risk-handling actions against established
metrics. Monitoring results may also provide a basis for developing additional
handling options and identifying new risks. The key to the monitoring process
is to establish a cost, schedule, and performance management indicator system
over the entire program that the PM uses to evaluate the status of the
program. The indicator system should be designed to provide early warning of
potential problems to allow management actions. Risk monitoring is not a
problem-solving technique, but rather, a proactive technique to observe the
results of risk handling and identify new risks. Some monitoring techniques
can be adapted to become part of a risk indicator system:
- Test and Evaluation (T&E). A
well-defined (T&E) program is a key element in monitoring the
performance of selected risk-handling options and developing new risk
- Test-Analyze-and-Fix (TAAF). TAAF
is the use of a period of dedicated testing to identify and correct
deficiencies in a design.
- Demonstration Events.
Demonstration events are points in the program (normally tests) that
determine if risks are being successfully abated.
- Earned Value (EV). This
uses standard DoD cost/schedule data to evaluate a program's cost and schedule
performance in an integrated fashion. As such, it provides a basis to
determine if risk-handling actions are achieving their forecasted
- Technical Performance Measurement (TPM). TPM is a product design assessment which estimates, through
engineering analysis and tests, the values of essential performance
parameters of the current design as effected by risk-handling
- Program Metrics. These are used
for formal, periodic performance assessments of the various development
processes, evaluating how well the system development process is achieving
its objective. This technique can be used to monitor corrective actions that
emerged from an assessment of the critical risk processes.
- Process Proofing. Similar to
Program Metrics, but aimed at manufacturing and support processes which are
critical to achieving system requirements. Proofing simulates actual
production environments and conditions to insure repeatedly conforming
hardware and software.
- Schedule Performance Monitoring.
This is the use of program schedule data to evaluate how well the program is
progressing to completion.
5.7 describes several monitoring techniques, e.g., earned value.
The indicator system and periodic reassessments of
program risk should provide the PMO with the means to incorporate risk
management into the overall program management