A rigorous, event-oriented management process shall be used for acquiring quality products that emphasizes effective acquisition planning, improved communications with users, and aggressive risk management by both Government and industry. (Directive 5000.1, p.l-1)
Effective acquisition planning and aggressive risk management by both Government and industry are essential for success. Program decisions and resource commitments must be based on plans for, and progress in, controlling risk. (Directive 5000.1, p.l-4)
A risk management program shall be established for each acquisition program to identify and control performance, cost, and schedule risks, using the areas of risk identified in DoD 4245.7-M, "Transition from Development to Production" throughout the acquisition cycle. The risk management program must include provisions for eliminating these risks or reducing them to acceptable levels.
Industry participation in risk management is essential to ensure a clear understanding of program objectives, produce schedule realism, and identify appropriate incentives for contractual agreements. (Instruction 5000.2, p.5-B-l)