# Presentation: 669865

## Cost Analysis Symposium

***Cost Analysis Symposium***
***New Orleans, LA***
***April 12, 2005***

## Objective

***Objective***

**Discuss how NASA applies Risk Management concepts, techniques and methodologies in a program/project environment.**** **

## What is Risk Management?

**Risk management??**

**In simplest terms, Risk Management is an organized process to identify risks, their likelihood and impact, and deal with them upfront in a program/project environment**

## Key Points – Take Aways

- Sound Project Management is Sound Risk Management
- The only thing we manage on a project is Risk
- Risks impact objectives
- Risks come from decisions we make as we try to achieve objectives
- As a minimum risks need to be identified in the areas of technical, cost, schedule and safety
- Risks require a factual condition and have a potential negative consequence

## Where Do We Start with Decisions?

**Notes:**
Primary Purpose of Slide:
Key Points: 

## Risk Management Scope

## Risk Management Scope

***Risk Management Scope***

## Identification and Analysis Tools

***Identification and Analysis Tools***

## Writing a Risk Statement

**CONDITION**

**CONSEQUENCE**

- There is a
_**POSSIBILITY **_that,

_**Will **_
_**Occur**_

_**GIVEN**_

**Must be a FACT or perceived to be FACT**
**Must be REALITY BASED**
**Can have NO uncertainty attached**

**Must be ACTIONABLE**
**ONE condition and ONE consequence per statement**

## Example Top Level Risk Statement

- Condition
-  Given that the flight control software interface requirements still have 61 TBDs;
- Consequence
- There is a possibility that extensive cost overruns will be incurred in the performance of work by the software development contractor.

## Risk Reporting

**  ****1           2           3         4           5**

**Likelihood  (Probability)**

**Impact**
**(Consequence, severity)**

**5**
**4**
**3**
**2**
**1**

- Primary
- RISKS

**Risk priority is based on likelihood/impact attributes and the **
**timeframe in which action need to be taken, what’s important at the **
**moment and on available resources to accomplish project objectives**

**Notes:**
Primary Purpose of Slide: 

Key Points:	

## Communicating

- One of the 5 biggest challenges facing NASA is “Reducing the viscosity of Information” (How long it takes for information to flow through the organization.)
- President – Disney Imagineering
- Project Management Shared Experiences
- Virginia Beach, VA

- Two parts to communicating
*“**What I say” *
*and *
*“**What you hear”*
*They are never the same*

***Content – 7%***

***Tone – 38%***

***Visual***

## Risk Worksheet

## NASA Risk Management Courses/Workshops

- Center/Headquarters Courses/Workshops
- Foundations Course (6 hour)
- Project Team Risk Management Course/Workshop (2 day)
- Managing Flight Operations Risks Course (2 day)
- Program/Project Briefing (4 hour)
- Executive Overview Briefing (2 hour)
- APPL’s Wallops Flight Facility Training Center
- Risk Management for Practitioners (1 week)
- Applied Project Management (1 week)
- Focusing on identification and mitigation of risk

## Risk Management Contacts

***Risk Management Contacts***

- Continuous Risk Management Web Site _[http://crm.nasa.gov](http://crm.nasa.gov/)_
- NASA Risk Management Facilitators
- Charles Cockrell		_[ccockrell@riskmc.us](mailto:ccockrell@riskmc.us)_
- Bob Wingard			_[rwingard@riskmc.us](mailto:rwingard@riskmc.us)_
- Frank Manning		_[fmanning@riskmc.us](mailto:fmanning@riskmc.us)_
- Al Moore			_[amoore@riskmc.us](mailto:amoore@riskmc.us)_
- NASA Point of Contact
- Steve Botzum		_[sbotzum@riskmc.us](mailto:sbotzum@riskmc.us)_
- Each NASA Center has a Point of Contact

*1 800 804 0964*