ABSTRACT
This chapter presents an analytical framework and computational model for assessing and measuring risk in the engineering of enterprise systems. Risks external to a capability portfolio’s supplier–provider envelope are very real concerns. Risk sources outside this envelope must also be considered when designing and implementing a formal risk analysis and management program for a capability portfolio or family of capability portfolios. Enterprise risk management differs from traditional practice in the expanse of the consequence space within which risks affect enterprise goals, mission outcomes, or capabilities. Risk events can also negatively affect a supplier node’s programmatic activities. These activities include the technical or program-related work products that support the supplier’s business, engineering, management, or acquisition practices needed to advance the outcome objectives of the supplier’s contribution to its parent functionality node. Technical or program-related work products include architecture frameworks, engineering analyses, organizational structures, governance models, and acquisition management plans.
