||RMG 6th Edition: Risk Management Guide for DoD Acquisition
8.6.2. Program Managers
- Establish, use, and maintain an integrated risk management
process. PMs should ensure their integrated risk management process
includes all disciplines required to support the life cycle of their system
(e.g., systems safety, logistics, systems engineering, producibility,
in-service support, contracts, test, earned value management,
finance). If the contract is required to comply with ANSI/EIA-748,
Earned Value Management Systems, risk management should be an integral part
of the Contract Performance Report (CPR) and the associated IMS.
- Develop and maintain a program IMS that incorporates contractor
schedules and external Government activities in a single, integrated
schedule. Project independent estimates of completion dates for major
milestones and assess the probability of maintaining the baseline
schedule. Conduct schedule risk analysis as needed and determine the
potential impact to the program estimate and approved funding. Review
the contractor’s schedule risk analysis. Analyze the contractor’s
monthly IMS submissions, and monitor contractor progress against risk
- Jointly conduct IBRs with the contractor team to reach mutual
understanding of risks inherent in the contractor’s baseline plans.
Conduct IBRs as necessary throughout the life of the program. The
Program Managers’ Guide to the Integrated Baseline Review
Process provides details on conducting effective IBRs.
- Analyze earned value information contained in the CPR for identification
of emerging risk items or worsening performance trends for known risk
items. Assess realism of contractor’s projected estimate at completion
and adequacy of corrective action plans.
- Synthesize and correlate the status of new and ongoing risk elements in
the IMS, CPR, risk mitigation plans, technical status documentation, program
status reviews, and other sources of program status.
- Establish a realistic schedule and funding baseline for the program as
early as possible in the program, incorporating not only an acceptable level
of risk, but adequate schedule and funding margins. Protect the
program by budgeting to a conservative estimate with a high probability.
- Ensure the program has a defined RMP, and that risk assessments are
conducted per that plan. Ensure the program RMP defines the required
relationships with other risk related directives.
- Form a program RMB to include the PM/IPT Leader, Program Risk Management
Coordinator, Chief or Lead Systems Engineer, program logistician, budget and
financial manager, Prime Contractor PM/Lead Systems Engineer, and other
members relevant to the program strategy, phase, and risks.
- Approve appropriate risk mitigation strategies. Include
operational users and other stakeholders in the formulation and acceptance
of risk mitigation plans.
- Assign responsibility for risk mitigation activities and monitor
progress through a formal tracking system.
- Report program risks to appropriate Program Executive Officer
(PEO)/PM/Systems Commanders and user personnel prior to Milestone decisions,
following significant risk changes, or as requested. Use the Risk
Reporting Matrix (see Section 4.2) documented in the program RMP to report