In recent years, risk management has been increasingly emphasized by the DoD as a critical tool for assuring program success. Whereas "risk management" is a general term encompassing all the different areas of risk management, this document focuses specifically on the single aspect of Technical Risk Management. Although managing risk for all aspects of a program is critical, technical risk is perhaps the most important area of risk management because technical risk, and the degree to which technical processes can be controlled, is a significant driver of all other program risks. Unfortunately, technical risk and the importance of controlling critical technical processes are generally not well understood within the DoD acquisition community, nor is adequate guidance on these considerations readily available.
In response to these shortcomings, and the need to improve the efficiency and effectiveness of the acquisition process, this publication offers a single source of concise explanations and clear descriptions of steps one can take to establish and implement core technical risk management functions. It contains baseline information, explanations, and best practices that contribute to a well founded technical risk management program – invaluable to program managers overwhelmed by the magnitude of information and guidance available on the broad subject of risk management today. In addition, as an aid to the reader, Appendix A contains the Risk Management Requirements from DoDD 5000.1 and DoD 5000.2-R, implemented by SECNAVINST 5000.2B.
Each chapter addresses specific technical risk areas. Although developed for Department of the Navy program managers and their staffs, this document should be equally useful to contractor program managers. The fundamentals contained herein are applicable to all acquisition efforts, both large and small.