ABSTRACT
The purpose of risk management is to identify, assess and mitigate effects deriving from any uncertain event that may occur and result in adverse consequences to a system acquisition programme. Risk planning is the detailed formulation of a programme of actions for the management of risk. The confidence level of Life Cycle Cost (LCC) analysis results depends on the availability and efficient utilization of most significant information, on the assumptions of LCC model and on input data applied in the analysis. This process results in a Risk Management Plan (RMP). Risk tracking involves watching the risk elements identified and the mitigation results both internal and external to a project. Cost Risk models extend the applicability of parametric models based on algorithms relating cost to quantitative system characteristics. Sensitivity analysis involves recalculating the cost estimate with different quantities for selected input values, or parameters, comparing the results with the original estimate.
