Figure 4. Levels and Types of Consequence Criteria The results for each risk are then plotted in the corresponding single square on the Risk Technical Performance Schedule Cost Minimal or no 1 Minimal or no consequence to technical performance Minimal or no impact impact Budget increase or unit production Able to meet key dates. Minor reduction in technical performance or cost increases. 2 supportability, can be tolerated with little or no impact on program Slip < * month(s) < ** (1% of Budget) Minor schedule slip. Able to meet key milestones with no Budget increase or schedule float. unit production Moderate reduction in technical performance or cost increase 3 supportability with limited impact on program Slip < * month(s) objectives < ** (5% of Budget) Sub-system slip > * plus available float. Budget increase or Program critical path unit production Significant degradation in technical performance or affected. cost increase 4 major shortfall in supportability; may jeopardize program success Slip < * months < ** (10% of Budget) Exceeds APB Cannot meet key threshold Severe degradation in technical performance; Cannot program milestones. 5 meet KPP or key technical/supportability threshold; will jeopardize program success > ** (10% of Slip > * months Budget) Reporting Matrix. In this example, since the level of likelihood and consequence were both “3,” the corresponding schedule risk is reported as as shown in Figure 5, using a “yellow,” recommended display method that includes the risk title (where (S) identifies this risk as a schedule risk), risk causal factor, and mitigation approach.
Technical Performance Schedule Cost 1 Minimal or no consequence to technical performance Minimal or no impact Minimal or no impact 2 Minor reduction in technical performance or supportability, can be tolerated with little or no impact on program Able to meet key dates. Slip < * month(s) Budget increase or unit production cost increases. < ** (1% of Budget) 3 Moderate reduction in technical performance or supportability with limited impact on program objectives Minor schedule slip. Able to meet key milestones with no schedule float. Slip < * month(s) Sub-system slip > * plus available float. Budget increase or unit production cost increase < ** (5% of Budget) 4 Significant degradation in technical performance or major shortfall in supportability; may jeopardize program success Program critical path affected. Slip < * months Budget increase or unit production cost increase < ** (10% of Budget) 5 Severe degradation in technical performance; Cannot meet KPP or key technical/supportability threshold; will jeopardize program success Cannot meet key program milestones. Slip > * months Exceeds APB threshold > ** (10% of Budget) Figure 4. Levels and Types of Consequence Criteria The results for each risk are then plotted in the corresponding single square on the Risk Reporting Matrix. In this example, since the level of likelihood and consequence were both “3,” the corresponding schedule risk is reported as “yellow,” as shown in Figure 5, using a recommended display method that includes the risk title (where (S) identifies this risk as a schedule risk), risk causal factor, and mitigation approach.
dod_acq_risk_mgt_guide_4_aug_06_final.docx