Risk-Informed Decision Making Handbook , April , 2010
Risk-Informed Decision Making Handbook , April , 2010
From the document: "Risk management (RM) is an integral aspect of virtually every challenging human endeavor, but well-defined RM processes have only recently begun to be developed and implemented as an integral part of systems engineering at NASA, given the complex concepts that RM encapsulates and the many forms it can take. However, few will disagree that effective risk management is critical to program and project success. Recent NASA RM processes have been based on Continuous Risk Management (CRM), which stresses the management of risk during implementation. In December of 2008, NASA issued NPR 8000.4A [1], which introduced Risk-Informed Decision Making (RIDM) as a complementary process to CRM that is concerned with analysis of important and/or direction-setting decisions. Before, RM was considered equivalent to CRM; now, RM is defined as comprising both CRM and RIDM. This handbook addresses the RIDM component of RM. This is an essential part of RM since the decisions made during the course of a program ultimately “burn-in” the risk that must be retired/mitigated during the life cycle of the program (primarily during the development portion of the life cycle) using CRM processes to track progress towards the program’s goal. RIDM helps to ensure that decisions between alternatives are made with an awareness of the risks associated with each, thereby helping to prevent late design changes, which can be key drivers of risk, cost overruns, schedule delays, and cancellation. Most project cost-saving opportunities occur in the definition, planning, and early design phases of a project."
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