Technical Risk Assessment Handbook - Defence Science and ...

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Establishing the context
Communication and consultation
Risk assessment
Risk identification
Risk analysis
Risk evaluation
Monitoring and Review
Risk treatment
Figure 3: Risk management process
Basis for assessing risk
3.6 As defined in the AS/NZS ISO 31000:2009 standard, risk is the effect of
uncertainty on objectives. The DMO Project Risk Management Manual 2010 (PRMM)
states that the Government considers that a successful project is:
‘a project that delivers a fit-for-purpose capability, as approved by
Government, within the approved budget and schedule’ .
3.7 ‘Fit for purpose’ according to the PRMM means that the delivered system is
capable of conducting the missions required of it over its expected life. This includes
the mission system and support system, cross-system design characteristics such as
supportability, and support arrangements such as Australian Industry Involvement.
3.8 To ensure a successful project, the project sets objectives for performance,
supportability, safety, cost and schedule which must be met (as defined in the
PRMM). Accordingly the technical risk assessment must be made against the
objectives of the project. Further, the technical risk is assessed against the proposal
for which approval is sought; that is the option set being presented to Government.
3.9 The overall context and scope for a project is defined by the Preliminary
Operational Concept Document (POCD) at First Pass and by the Operational
Concept Document (OCD) at Second Pass. The required capability or performance
Technical Risk Assessment Handbook Version 1.1