TABLE OF CONTENTS Risk is defined as the possibility of a loss or injury or the possibility of some disadvantage or destruction. Systems engineering management is concerned with the management of technical risk or the risk associated with the technical aspects of the system life cycle. Broadly speaking, there are two major categories of risk: internal risk and external risk. Internal risks are those that are within the control of the project office; external risks are beyond the control of the project office. An example of an internal risk may be the risks associated with inappropriately manning the project office with qualified staff. This risk can be managed from within the project office. An external risk may be the introduction of some new legislation that places more stringent requirements on the system, leading to some changes to the user requirements.
The concept of risk is a subjective assessment in that risk identification and assessment are based on the perception of an individual and their interpretation of the term risk. What one individual may find risky, another individual may not. To that end, risk management must be performed by personnel with broad and experienced knowledge of the subject area to ensure that risks are assessed realistically. Given the extremely broad nature of risk, it is unlikely that a single person will be able to perform the entire risk-management function. Risk management is, therefore, a team effort. There are a number of components that combine to define the concept of...
