The technical, business, and management approach for acquiring and operating systems has, and continues to, evolve. For example, DoD can no longer rely on military specifications and standards to define and control how developers design, build, and support new systems. Today DoD uses commercial hardware and software, promotes open systems architecture, and encourages streamlining processes. While the new acquisition model gives government acquisition managers and their contractors broader control and more options, it also exposes them to new risks. DoD has prescribed a standard risk management methodology, which is described in the Risk Management Guide for DoD Acquisition and in the Defense Acquisition Deskbook.
Risk management is the act or practice of controlling risk.
It includes risk planning, assessing risk areas, developing risk-handling options, monitoring risks to determine how risks have changed, and documenting the overall risk management program. Risk management is a positive proactive management approach to meet program objectives and keep risk at an acceptable level. This is done by controlling the risks associated with the design, manufacturing, technology, test, and support functions that are part of systems acquisition and evaluating the impact of current management decisions on future options. A good risk management program can enhance program management effectiveness and provide managers with an important tool for reducing a system s life cycle costs. DCMA has adopted this risk management methodology and has incorporated DoD s structure, definitions, and framework into its policy.