scope:

This guide is limited to "acquisition" risk management as it relates to the FAA programs and projects. It does not cover "security," "insurance," "safety," or "accident" risks, which are generally considered to be outside of the FAA acquisition management realm. Rather, focus, from a program office viewpoint, is placed on acquisition risk management. Program management offices are charged with the responsibility of making decisions which inherently have an element of uncertainty. There is no absolute distinction, therefore, between program management and risk management. Risk management is an integral part of the program management function. Risk management should be thought of as a program management methodology, rather than an independent and isolated function distinct from other program management functions.

Risk Management is a method of managing that concentrates on identifying and controlling the areas or events that have a potential of causing unwanted change. It is informed management.

PURPOSE. This FAA Acquisition Risk Management Guide (FARM-Guide) is structured for use by individuals and organizations with widely varying knowledge and experience in the risk management arena. It contains sections, from ones that are tutorial in nature, for users with little or no experience, to sections that contain templates and checklists, for users who already have a background and experience in this subject. This guide also allows the author of an Acquisition Risk Management Plan (ARMP) to tailor a plan in relation to the size and complexity of a program. A sample plan is included in the appendices, that indicates what a basic RMP should look like for a rather straight-forward program. That program consists of about 60 local area networks, made up of (COTS) microprocessor driven computers, tied together with some COTS operating system software, and will employ application specific software that will be written, using specifications derived from an already existing system. A review of the Table of Contents will reveal that it is also an outline. If you are new to this area, start at the beginning of the guide. If you are experienced, skip over to Chapter 4, and go to work. In any case, employ Chapters 5, 6 and 7, and draw on the material in the appendices as needed.

This guide follows policies and procedures, which establish the basis for managing risk, consistent with the guidelines contained in OMB Circular A-109; FAA ORDER 1810.1F; the DSMC "Risk Management Concepts and Guidance" guidebook; and the DoD Instruction 5000.2, "Defense Acquisition Management Policies and Procedures,".

This section authorizes the employment of a template approach in development of risk management plans for acquisition programs for the FAA.