Programmatic risk reduction for large software procurements

When making an important decision, program managers must evaluate the risk of each alternative and weigh the trade-offs between one type of risk and another. Program managers are familiar with the concepts of risk analysis and assessment in such areas as human factors, security, and accident prevention. The risk-based approach provides traceable, manageable, and justifiable methods for decision-making. When acquiring large or complex software systems, program managers can use this same risk-based approach to procure a system that works correctly, is delivered on time and within budget, and meets the needs of the organization. This approach enables managers to assess specific problems or issues, rank their relative importance, determine which have the greatest potential for management, allocate resources appropriately, and monitor the effectiveness of actions taken.