Using Risk-Issue-Opportunity Management to Shape Your Acquisition

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Transcript of Using Risk-Issue-Opportunity Management to Shape Your Acquisition

Page 1: 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

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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

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Risk / Issue / Opportunity (RIO)

• What are we talking about? •Risk • Issue •Opportunity

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Options to respond to risk

• Responses • Assessment • Handling

•Mitigation •Avoidance •Acceptance • Ignore

• Monitor / Track / Manage

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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?

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Risk Assessment Model Nearly Certain

Highly Likely

Likely

Unlikely

Remote

Likelihood Impact

Minimal / None Somewhat Moderate Major Un-

acceptable

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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.

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Impact / Consequence • Set impact levels based on

the category of the risk – Cost – Schedule – Performance (Technical)

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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

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Scale based on the size of the project and/or its tolerance for variation. For example: Project budget of $2M

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Schedule Impact

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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

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Performance Impact • Examples base it on Key Performance

Parameters (KPPs)

– Impact on mission performance – Website availability – Facility Access – Ability to handle calls

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Performance Impact

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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

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Risk Assessment Model Nearly Certain

Highly Likely C

Likely

Unlikely A B

Remote

Likelihood Impact

Minimal / None Somewhat Moderate Major Un-

acceptable

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Acquisition Risks

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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

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Impacts on Acquisition

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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

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Acquisition Risks

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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

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Impacts on Acquisition

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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

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Impacts on Acquisition

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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

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Impacts on Acquisition

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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

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Impacts on Acquisition

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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

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Impacts on Acquisition

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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

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Impacts on Acquisition

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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

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Impacts on Acquisition

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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

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Impacts on Acquisition

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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

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Impacts on Acquisition

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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

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Acquisition Risks

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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

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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

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• Matt Wilson – SimVentions – [email protected] (540) 372-7727

• Larry Floyd – DAU – [email protected] (703) 805-4876

• Lyle Eesley – SME – [email protected] (757) 232-0664

• Phil Salmeri – SME – [email protected] (540) 735-4048

Contact Information

Follow-up discussion here are World Congress at SimVentions Booth 519