High And Medium Items Should Be Prioritized From The Most Important Risks

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4.3.2. Prioritize Risks After analyzing each risk or opportunity, the high and medium items should be prioritized from the most to least important. This allows the team to focus on the most important risks first. High and medium risks are placed on the Top “N” List in their order of priority and low risks are placed on the risk watch list. Each program IPT submits the information shown in Table 5 to the ROMC and the Risk and Opportunity Management Board for the prioritized risk items in each WBS work element. All risk items are input to the risk and opportunity management tool Likelihood and consequence values for technical, cost, schedule and other team impacts are validated by the ROMB.

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5. Risk and
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Even if the ownership is assigned to an external organization (subcontractor, teammate, and customer) the program/ROMB continue to be responsible for tracking, monitoring, and handling the risk/opportunity.
5.1.2. Develop Handling Strategies The goal of risk and opportunity handling is to reduce overall risk and gain maximum benefit. When developing the handling strategies, the team must consider the effectiveness of the strategy on the specific risk or opportunity being addressed and how the strategy will impact, or be impacted by other risk or opportunity mitigation strategies. The team must select the combination of handling strategies that position the overall program for success.

The four basic risk handling techniques are risk mitigation, avoidance, assumption, and transfer. The corresponding opportunity handling techniques are capture, transfer, ignore, or pursue. Risk Mitigation Risk mitigation does not attempt to eliminate the source of the risk but seeks to reduce the likelihood and consequence, minimizing its effect on the program. Examples of mitigation strategies are listed below:
• Multiple Development Efforts Create competing systems in parallel that meet the same performance requirements.
• Alternative Design Create a backup design option that uses a lower risk approach.
• Trade Studies Arrive at a balance of engineering requirements
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