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 CTD Phase, and 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