What to do with it? %���� For instance, in the case of our ebook, a mitigation strategy could be to hire another illustrator to do the job and launch on time. Except if they miraculously feel better tomorrow, the illustration work being delayed seems near certain. This NASA Procedural Requirements document provides the requirements for risk management for the agency, its institutions, and its programs and projects as required by NPD 1000.0, Governance and Strategic Management Handbook; NPD 7120.4, Program/Project Management; and NPD 8700.1, NASA Policy for Safety and Mission Success. “The context statement should include only facts, not assumptions. NASA’s Risk Management program’s mission is to provide a unified risk management structure that applies to all agency activities and all applicable risks and interactions, and is integrated across organizational boundaries to ensure that risk management decisions are delegated and/or elevated to the appropriate level. endobj He currently is leading several high-priority projects at NASA HQ aimed at institutionalizing the Risk-Informed Decision-Making process at NASA. Credible Risk A risk having a likelihood rank of at least 窶・窶・on the GSFC Risk Matrix Standard scale (Note: This risk scale has 5 likelihood ranks with rank 1 being the lowest likelihood.) on: function(evt, cb) { } Content includes RIDM process interfaces, the technical details of the various steps in the RIDM process and a case study with opportunities for student participation that runs throughout the course to illustrate the key learning points. It addresses the opportunities, challenges and concerns noted by NASA centers that develop and implement center-level Risk Management policies, plans and processes. Meeting minutes and presentations from the 2014 Enterprise Risk and Opportunity Management workshop. In addition to the risk statement, it is also helpful to include the key circumstances around the risk, the contributing factors, and related information such as what, where, when, how, and why. For the likelihood score, you estimate how certain you are the risk will materialise. This course is intended for NASA program, project, mission support, institutional, systems engineering, and Safety and Mission Assurance personnel who wish to play a role in bringing about improved decision-making anywhere in the agency. If your risk scores fall in this area, put the risks on a watch... Low risk. Privacy policy. The Agency Risk Management Working Group covers the spectrum of related activities across institutional Risk Management and program and project Risk Management. A-ll provides guidance on preparing the Fiscal Year 2016 budget and instructions on budget execution. forms: { For this, we need to turn to the NASA Risk Matrix. Organizational Risk and Opportunity Management (OROM) concerns the means by which organizations apply risk and opportunity considerations in developing their strategic goals and objectives; implement them through a portfolio of programs, projects, institutional assets, and activities; and manage them through controls. Study it, make it yours, and use its general principles in complex situations. The management of risks that threaten to jeopardize the organization’s attempts to fulfill its strategic objectives as defined in its strategic plan. Dezfuli has a Ph.D. in nuclear engineering from the University of Maryland. National Aeronautics and Space Administration, OSMA Hosts Risk Management Summit to Address Key Challenges and Opportunities, NASA Governance and Strategic Management Handbook, NASA Engineering and Program/Project Management Policy, NASA Policy for Safety and Mission Success, Agency Risk Management Procedural Requirements, NASA Risk-Informed Decision Making Handbook, Organizational Risk and Opportunity Management Concepts and Processes for NASA's Consideration, Enterprise Risk and Opportunity Management, Preparation, Submission, and Execution of the Budget, Management's Responsibility for Internal Control. Development of Risk Assessment Matrix for NASA Engineering and Safety Center This paper describes a study, which had as its principal goal the development of a sufficiently detailed 5 x 5 Risk Matrix Scorecard. a. listeners: [], So how do you rate both of these factors exactly? Second, what is the consequence score? } %PDF-1.5 (function() { He has authored many papers in the areas of safety, risk assessment and Risk Management. Risk Management Guide For DoD Acquisition, June 2003 IS0 17666, Space Systems - Risk Management Risk Assessment at Aerospace Risk Assessment at JPL Proposed Example of “Geometrically-Calibrated” Qualitative Matrix Proposed Semi-Quantitative Geometric Likelihood & Consequence Scales and Risk Rating Matrices (In Percents & In Dollars) Delaying the launch by a week because of the illustration work seems to fit with “Delay on some tasks minimally impacting overall schedule” in our consequence scorecard. endobj The illustrator gets sick, unable to work for a week, and you need to communicate the risk of a delayed launch to the rest of the team: “Given that the illustrator is still on sick leave, there is a possibility of a delay in the illustration work adversely impacting the ebook design process, thereby leading to pushing back the ebook launch by at least one week.”. <>>> For example if you have a minor impact on cost (2) and a major slip in overall schedule (4), the consequence score would be 4. This NASA Policy Directive provides the overall policy framework for NASA's strategic acquisition process with appropriate references to other key processes and directives. The NASA Risk Matrix uses these two factors to quantify the level of risk. Office of Management and Budget Circular No. You can’t steal second base and keep your foot on first.”. Dezfuli devised a safety goal implementation framework; the conceptual work he performed in this area helped shape the NASA safety goal policy being implemented for human space flights. This NASA Policy Directive has two primary aims: (1) to set forth NASA’s governance framework — principles and structures through which the agency manages mission, roles and responsibilities and (2) to describe NASA’s Strategic Management System — processes by which the agency manages strategy and its implementation through planning, performance and results. NASA Risk Matrix Whenever program or project risk is being identified, it is a common practice at NASA, like many other organizations to use a 5 X 5 risk matrix with a green, yellow, red coding for visualization of the risk. The management of risks across four mission execution domains: safety, technical performance, cost and schedule. List the Risks for the Project. Most of the decisions we make at work don’t involve evaluating the impact of a potential risk on human safety—even though many manual workers do need to consider that criterion on a daily basis. There are few organisations working on projects as complex as the ones NASA deals with. Additionally, this document consolidates the agency's crosscutting software policy and responsibilities across NASA Headquarters' offices and mission directorates. <>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 13 0 R 18 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> NASA is known to have a process for everything. Dezfuli has over 25 years of experience in System Safety and Probabilistic Risk Assessment (PRA) applications and methodology development. ); Risk management includes two complementary processes: Risk-Informed Decision Making and Continuous Risk Management. This strategic acquisition process complies with NASA obligations as a federal agency and is applicable to each of NASA's major areas of investment (Flight Programs and Projects, Information Technology and Institutional Infrastructure, and Research and Technology) to ensure the efficient, effective use of the resources entrusted to the agency. There are two main factors impacting any level of risk: how likely the potential departure is to happen (the likelihood) and negative the impact of the departure from the original plan would be (the consequence). For more information, contact the PoC at your center. Every NASA center has a Risk Management Point of Contact (PoC). Perform extra research to better understand the risk. For instance, let’s say you are creating an ebook, and working with an illustrator to design some graphics to go along the copy. Effective Oct. 24, 2016, NID 8000-108, Agency Risk Management Procedural Requirements, replaced NPR 8000.4A, same title, for at least a 12-month period with implementation to begin immediately. At this stage, your only goal is to state the risk in an easy-to-understand way, using the following template: Given that [CONDITION], there is a possibility of [DEPARTURE] adversely impacting [ASSET], thereby leading to [CONSEQUENCE]. NASA’s Risk Management program’s mission is to provide a unified risk management structure that applies to all agency activities and all applicable risks and interactions, and is integrated across organizational boundaries to ensure that risk management decisions are delegated and/or elevated to the appropriate level. The NASA Risk Matrix—also called risk scorecard—helps determine the level of risk associated with a particular situation, and decide how to react. Then, for the consequence score, you use the consequence scorecard: Obviously, if you don’t work at NASA and need to evaluate risk in daily life, many of these criteria will be over the top. The consequence scorecard is great to understand the principles behind determining a consequence score. Specifically, it is NASA's policy to. It is sometimes called a “5x5 Matrix” because it … A re-examination of the existing internal control requirements for federal agencies was initiated in light of the new internal control requirements for publicly traded companies contained in the Sarbanes-Oxley Act of 2002. Who better to turn to than one of the biggest space agencies in the world to learn how to manage risk? A-123 defines management's responsibility for internal control in federal agencies. However, if hiring a new designer significantly impacts the overall production cost of the ebook, and results in much lower margins, it may be a smart decision to just delay the launch. NASA recommends to keep it factual and to stay away from trying to provide a solution. Uncertainty raises our stress levels, which makes us more prone to mistakes. Of course, you don’t need to communicate this formally in all uncertain situations, but making sure all the key information—condition, departure, asset, consequence—are included in your risk statement will make it easier for people you collaborate with to understand the risk you worry about.