ABSTRACT
This chapter addresses the issues of technical risk management and can be used as guidance for all technical areas. It is designed to help mitigate risks. Risk management applies to all new product development. Common technical risk areas include performance, producibility, production, scheduling, and resources. Risk issues and their consequences concern everyone involved with a program’s success. The risk management process can be set up so it is reasonably formal, systematic, and applied in a disciplined manner. Risk should be quantified when possible. This first step in a technology maturation program plan should include a risk-management plan. The second step in technology risk management is to assess risk. There are a number of mathematical methods in performing risk and decision analysis. There are a number of ways to handle risk issues; each choice depends on the situation. Risk handling includes the major areas such as risk avoidance, risk assumption, risk transfer, and risk control.
