Scope and Depth

This handbook provides guidance for conducting risk-informed decision making in the context of NASA risk management (RM), with a focus on the types of direction-setting key decisions that are characteristic of the NASA program and project life cycles, and which produce derived requirements in accordance with existing systems engineering practices that flow down through the NASA organizational hierarchy. The guidance in this handbook is not meant to be prescriptive. Instead, it is meant to be general enough, and contain a sufficient diversity of examples, to enable the reader to adapt the methods as needed to the particular decision problems that he or she faces. The handbook highlights major issues to consider when making decisions in the presence of potentially significant uncertainty, so that the user is better able to recognize and avoid pitfalls that might otherwise be experienced.

Examples are provided throughout the handbook, and in Appendix F, to illustrate the application of RIDM methods to specific decisions of the type that are routinely encountered in NASA programs and projects. An example notional planetary mission is postulated and used throughout the document as a basis for illustrating the execution of the various process steps that constitute risk-informed decision making in a NASA risk management context ("yellow boxes"). In addition, key terms and concepts are defined throughout the document ("blue boxes").

Where applicable, guidance is also given on the spectrum of techniques that are appropriate to use, given the spectrum of circumstances under which decisions are made, ranging from narrow-scope decisions at the hardware component level that must be made using a minimum of time and resources, to broad-scope decisions involving multiple organizations upon which significant resources may be brought to bear. In all cases, the goal is to apply a level of effort to the task of risk-informed decision making that provides assurance that decisions are robust.

Additional guidance is planned to address more broadly the full scope of risk management requirements set forth in NPR 8000.4A, including:

• Implementation of the RIDM process in the context of institutional risk management; and

• Implementation of Continuous Risk Management (CRM) in conjunction with RIDM.

Purpose

The purpose of this handbook is to provide guidance for implementing the risk-informed decision making (RIDM) requirements of NASA Procedural Requirements (NPR) document NPR 8000.4A, Agency Risk Management Procedural Requirements [1], with a specific focus on programs and projects in the Formulation phase, and applying to each level of the NASA organizational hierarchy as requirements flow down. Appendix A provides a cross-reference between the RIDM-related requirements in NPR 8000.4A and the sections of this handbook for which guidance is provided.

This handbook supports RIDM application within the NASA systems engineering process, and is a complement to the guidance contained in NASA/SP-2007-6105, NASA Systems Engineering Handbook [2]. Figure 1 shows where the specific processes from the discipline-oriented NPR 7123.1, NASA Systems Engineering Process and Requirements [3], and NPR 8000.4 intersect with product-oriented NPRs, such as NPR 7120.5D, NASA Space Flight Program and Project Management Requirements [4]; NPR 7120.7, NASA Information Technology and Institutional Infrastructure Program and Project Management Requirements [5]; and NPR 7120.8, NASA Research and Technology Program and Project Management Requirements [6]. In much the same way that the NASA Systems Engineering Handbook is intended to provide guidance on the specific systems engineering processes established by NPR 7123.1, this handbook is intended to provide guidance on the specific RIDM processes established by NPR 8000.4A.