Consequence: The outcome of a future occurrence expressed
qualitatively or quantitatively, being a loss, injury, disadvantage or gain.
Future Root Cause: The reason, which, if eliminated or corrected,
would prevent a potential consequence from occurring. It is the most
basic reason for the presence of a risk.
Issue: A problem or consequence which has occurred due to the
realization of a root cause. A current issue was likely a risk in the
past that was ignored or not successfully mitigated.
Risk: A measure of future uncertainties in achieving program
performance goals within defined cost and schedule constraints. It has
three components: a future root cause, a likelihood assessed at the present
time of that future root cause occurring, and the consequence of that future
Risk Analysis: The activity of examining each identified risk to
refine the description of the risk, isolate the cause, and determine the
effects and aiding in setting risk mitigation priorities. It refines
each risk in terms of its likelihood, its consequence, and its relationship to
other risk areas or processes.
Risk Identification: The activity that examines each element of the
program to identify associated future root causes, begin their documentation,
and set the stage for their successful management. Risk identification
begins as early as possible in successful programs and continues throughout
the life of the program.
Risk Management: An overarching process that encompasses
identification, analysis, mitigation planning, mitigation plan implementation,
and tracking of future root causes and their consequence.
Risk Management Planning: The activity of developing and documenting
an organized, comprehensive, and interactive strategy and methods for
identifying and tracking future root causes, developing risk-mitigation plans,
performing continuous risk assessments to determine how risks and their root
causes have changed, and assigning adequate resources.
Risk Mitigation Plan Implementation: The activity of executing
the risk mitigation plan to ensure successful risk mitigation occurs. It
determines what planning, budget, and requirements and contractual changes are
needed, provides a coordination vehicle with management and other
stakeholders, directs the teams to execute the defined and approved risk
mitigation plans, outlines the risk reporting requirements for on-going
monitoring, and documents the change history.
Risk Mitigation Planning: The activity that identifies, evaluates,
and selects options to set risk at acceptable levels given program constraints
and objectives. It includes the specifics of what should be done,
when it should be accomplished, who is responsible, and the funding required
to implement the risk mitigation plan.
Risk Tracking: The activity of systematically tracking and
evaluating the performance of risk mitigation actions against established
metrics throughout the acquisition process and develops further risk
mitigation options or executes risk mitigation plans, as appropriate. It
feeds information back into the other risk management activities of
identification, analysis, mitigation planning, and mitigation plan