3: Risk Management
Strengthen Risk Management. Other Information:
The consequences of ineffective risk management are all too apparent when major acquisitions exceed their budgets by hundreds
of millions of dollars or miss their scheduled deployment by many years. To ensure that this critical discipline has an active
“owner,” the Government should establish an Independent Risk Review role on major acquisitions. This role should be filled
by a third party not affiliated with either the agency managing the project or the prime contractor supporting it. Performance
Measures - Managing risk from the beginning of the procurement and throughout the lifecycle is crucial to identifying issues,
mitigating risks and preventing problems. Risk management is performed in collaboration with contractors and Government personnel,
as well as other stakeholders who often bring a unique perspective and insight into risks. To measure the effectiveness and
success of the risk management process, measures might include metrics associated with the number of: * Green, yellow and
red programs * Program successes versus cancellations * “Surprises” that require executive or congressional oversight
Objective(s):
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