using risk-issue-opportunity management to shape your acquisition
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Using Risk / Issue / Opportunity Management to Shape Your Acquisition
Breakout Session #: F06
Matt Wilson, Larry Floyd, Lyle Eesley, Phil Salmeri
Date: Tuesday, July 26
Time: 4:00pm–5:15pm
2
Objective / Format
• Objective • Discuss Risk / Issue / Opportunity (RIO)
handling related to the Acquisition process and related artifacts
• Format • Basic RIO Model overview • Provide examples from SMEs • Provide a forum for discussion • Learn from one another
3
Risk / Issue / Opportunity (RIO)
• What are we talking about? •Risk • Issue •Opportunity
4
Options to respond to risk
• Responses • Assessment • Handling
•Mitigation •Avoidance •Acceptance • Ignore
• Monitor / Track / Manage
5
Risk Assessment • Risk Identification
• What is the RIO •Describe it in a statement •What category does it fall into?
• What is its likelihood •How probable is this to happen
• What is its impact •What is the consequence if this RIO comes to pass?
6
Risk Assessment Model Nearly Certain
Highly Likely
Likely
Unlikely
Remote
Likelihood Impact
Minimal / None Somewhat Moderate Major Un-
acceptable
Likelihood / Probability Likelihood Rating Description 5 Nearly Certain The event is expected to occur in most
circumstances as there is a history of regular occurrence on this type of project.
4 Highly Likely There is a strong possibility the event will occur as there is a history of frequent occurrence on this type of project.
3 Likely The event might occur at some time as there is a history of casual occurrence on this type of project.
2 Unlikely Not expected, but there's a slight possibility it may occur at some time.
1 Remote Highly unlikely, but it may occur in exceptional circumstances. It could happen, but probably never will.
7
Impact / Consequence • Set impact levels based on
the category of the risk – Cost – Schedule – Performance (Technical)
8
Cost Impact
Impact Rating Description 5 Unacceptable
> 15% or > $350K
4 Major 10-15% or $200K – $350K 3 Moderate 5-10% or $100K – $200K 2 Somewhat 1-5% or $20K – $100K 1 Minimal /
None < 1% or < $20K
9
Scale based on the size of the project and/or its tolerance for variation. For example: Project budget of $2M
Schedule Impact
10
Impact Rating Description 5 Unacceptable > 12 weeks schedule impact 4 Major 8-12 weeks schedule impact 3 Moderate 4-8 weeks schedule impact 2 Somewhat 1-4 weeks schedule impact 1 Minimal / None < 1 week schedule impact
Scale based on the duration of the project and/or its tolerance for variation. For example: Project duration of 1 Year
Performance Impact • Examples base it on Key Performance
Parameters (KPPs)
– Impact on mission performance – Website availability – Facility Access – Ability to handle calls
11
Performance Impact
12
Impact Rating Description 5 Unacceptable Catastrophic impact on the product /service.
No credible work-around exists. 4 Major Significant impact on the product / service.
Work arounds require considerable effort. 3 Moderate Noticeable impact on the product / service.
Work arounds require effort. 2 Somewhat Minor impact on the product / service.
Work arounds are not cumbersome. 1 Minimal /
None Almost no impact on the functional quality of the product / service.
This is the trickiest one and may require multiple scales and sub-categories to properly quantify. Often subjective. Example: Achieve technical objectives
13
Risk Assessment Model Nearly Certain
Highly Likely C
Likely
Unlikely A B
Remote
Likelihood Impact
Minimal / None Somewhat Moderate Major Un-
acceptable
Acquisition Risks
14
Schedule Constraints
Technical Challenges
Organizational Alignment
Funding Consistency
Stakeholder Expectations
Technological Stability
Business Allocation
Protest
…
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection Evaluation Factors
Risk / Issue / Opportunity Category
Impacts on Acquisition
15
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection & Evaluation Factors
Areas of Opportunity / Mitigation Schedule Constraints
Technical Challenges
Organizational / Political
Funding
Stakeholder Expectations
Technological Stability
Business / Programmatic
Protest
Other
Risk / Issue / Opportunity Category
Acquisition Risks
16
Schedule Constraints
Technical Challenges
Organizational Alignment
Funding Consistency
Stakeholder Expectations
Technological Stability
Business Allocation
Protest
…
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection Evaluation Factors
Risk / Issue / Opportunity Category
Other Other
Impacts on Acquisition
17
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection & Evaluation Factors
Areas of Opportunity / Mitigation Schedule Constraints
Technical Challenges
Organizational / Political
Funding
Stakeholder Expectations
Technological Stability
Business / Programmatic
Protest
Other
Risk / Issue / Opportunity Category
Impacts on Acquisition
18
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection & Evaluation Factors
Areas of Opportunity / Mitigation Schedule Constraints
Technical Challenges
Organizational / Political
Funding
Stakeholder Expectations
Technological Stability
Business / Programmatic
Protest
Other
Risk / Issue / Opportunity Category
Impacts on Acquisition
19
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection & Evaluation Factors
Areas of Opportunity / Mitigation Schedule Constraints
Technical Challenges
Organizational / Political
Funding
Stakeholder Expectations
Technological Stability
Business / Programmatic
Protest
Other
Risk / Issue / Opportunity Category
Impacts on Acquisition
20
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection & Evaluation Factors
Areas of Opportunity / Mitigation Schedule Constraints
Technical Challenges
Organizational / Political
Funding
Stakeholder Expectations
Technological Stability
Business / Programmatic
Protest
Other
Risk / Issue / Opportunity Category
Impacts on Acquisition
21
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection & Evaluation Factors
Areas of Opportunity / Mitigation Schedule Constraints
Technical Challenges
Organizational / Political
Funding
Stakeholder Expectations
Technological Stability
Business / Programmatic
Protest
Other
Risk / Issue / Opportunity Category
Impacts on Acquisition
22
Risk / Issue / Opportunity Category
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection & Evaluation Factors
Areas of Opportunity / Mitigation Schedule Constraints
Technical Challenges
Organizational / Political
Funding
Stakeholder Expectations
Technological Stability
Business / Programmatic
Protest
Other
Impacts on Acquisition
23
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection & Evaluation Factors
Areas of Opportunity / Mitigation Schedule Constraints
Technical Challenges
Organizational / Political
Funding
Stakeholder Expectations
Technological Stability
Business / Programmatic
Protest
Other
Risk / Issue / Opportunity Category
Impacts on Acquisition
24
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection & Evaluation Factors
Areas of Opportunity / Mitigation Schedule Constraints
Technical Challenges
Organizational / Political
Funding
Stakeholder Expectations
Technological Stability
Business / Programmatic
Protest
Other
Risk / Issue / Opportunity Category
Impacts on Acquisition
25
Requirement (PWS, SOW, SOO)
Contract Type and Structure
Performance Standards
Technical Evaluation Plan / Team
Quality Assurance Surveillance Plan
Cost Estimate
Acquisition Team Composition
Source Selection & Evaluation Factors
Areas of Opportunity / Mitigation Schedule Constraints
Technical Challenges
Organizational / Political
Funding
Stakeholder Expectations
Technological Stability
Business / Programmatic
Protest
Other
Risk / Issue / Opportunity Category
Acquisition Risks
26
Schedule Constraints
Technical Challenges
Organizational Alignment
Funding Consistency
Stakeholder Expectations
Technological Instability
Business Allocation
Protest
…
X
X
X
X
X
X
X
X
Address your highest Risks (ignore the green ones)
Risk / Issue / Opportunity Category
What now? • Identify RIOs • Categorize RIO
Assess Probability / Impact – Only focus on higher risks
• Handle Risks – Intentionally impact acquisition
• Where is the best place to address each item
– Track / Resolve
27
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• Matt Wilson – SimVentions – mwilson@simventions.com (540) 372-7727
• Larry Floyd – DAU – lawrence.floyd@dau.mil (703) 805-4876
• Lyle Eesley – SME – lyle.eesley@gmail.com (757) 232-0664
• Phil Salmeri – SME – pesalmeri@gmail.com (540) 735-4048
Contact Information
Follow-up discussion here are World Congress at SimVentions Booth 519
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