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This pamphlet is intended to provide program managers and their program management team a basic understanding of the terms, definitions and processes associated with effective risk management.
Current acquisition reform initiatives embrace closer government/industry relationships and greater reliance on commercial technologies—both designed to provide reliable, lower cost weapon systems. Hand-in-hand with these initiatives is an accompanying focus on risk management.
The risk management concepts and ideas presented in this pamphlet are focused on encouraging the use of risk-based management practices and suggesting ways to address the program risk without prescribing the use of specific methods or tools. Rather, this pamphlet was prepared as a guide, with the expectation that program risk management processes will be developed to meet the intent of this document.
The terms and definitions in this guide have been standardized with the current DoD terminology as a result of the activities of the 1996 DoD Risk Management Working Group. Additionally, this document served as a primary source of the DoD level risk management material for the December 96 version of the DoD online acquisition model, “Deskbook.”