Appendix B: An Abbreviated
List of Risk Sources
An exhaustive list of risk sources would be as lengthy as the dictionary
(or longer). As such, the sources listed in Table B.1 represent only a
small percentage of possible sources. However, this list of risk sources
includes risks that are most common and prevalent in the community
that created it. is list was generated for a bureaucratic organization
focusing on eld deployment of large-scale hardware and software
systems and was engaged in intense activity on short notice. is may
or may not describe your organizational environment. However, this
background information should provide some perspective on why
these sources were selected above all others.
Risk sources are where risks originate. Risk sources are not cat-
egories, although treating them as categories could help identify and
dene other risks, or facilitate development of the risk breakdown
structure. Categories sort risks to aid in identication. Sources gener-
Table B.1 Possible Risk Sources
RISK COST PROJECT SCHEDULE TECHNICAL COMMENTS
The lack of facilities and tools to produce at the desired rate (rate tooling) could prevent
production ow from reaching the desired level.
Concept, failure to apply logistics
support analysis (LSA) during
Failure to participate in the denition of system concepts could produce a system
design in follow-on phases that does not meet supportability objectives and requires
excessive or unattainable operation and support (O&S) costs, as well as labor, to meet
the readiness objectives.
Concurrent development or preparation for production could cause deviations.
Concurrency often results in discovery of problems at a time when a cost premium
must be paid to resolve problems and keep the project on or near the original schedule.
Conguration control of vendor
Organizations do not control the conguration of items procured from the marketplace,
which presents potential risks in both initial design and availability of spares.
Contracting, inadequate provision
In terms of impact and the probability of its occurrence, the major risk area in
integrated logistics support (ILS) contracting is the failure to contract properly for
data, materials, and services.
Contractor, communication by
Failure of the subcontractors’ and contractors’ personnel to keep prime contractor and
project management organization informed of problems and potential problems in a
timely manner. Communication problems may also occur if management fails to fully
communicate direction to all involved in the project in a timely manner.
Contractor, lack of nancial
If any contractors have not been able to adequately nance project requirements, the
required work may be delayed or curtailed.
Contractor, production readiness of
A contractor may fail to be adequately prepared for production.
Contractor, subcontractors and
A prime contractor may not maintain adequate control of subcontractor quantity,
schedule, and cost performance.
Contractor, underbidding by
A contractor may underbid or buy in to get contracts and may fail to provide the desired
products and services on schedule and within budget.
Organizations often fail to coordinate purchases with other departments or divisions,
which minimizes available logistics support and the economies of scale that would
otherwise be available.
Data, inadequate planning for
Collecting data without detailed planning for its use may lead to a mismatch of data
collection information requirements and failure to accomplish the intended purpose of
Data, incomplete or inaccessible
Without sufcient data available from each test and used properly for planning
subsequent tests, it is not possible to evaluate the adequacy of the system to meet all
readiness requirements. Without accurate failure rates, system and component
reliability cannot be determined. Lacking the necessary data, system design and ILS
progress cannot be established, problems cannot be identied, and additional testing
may be required.
Design, delayed denition of
Delayed decisions on reliability and supportability requirements could result in
suboptimum support. After the design is committed, the options become limited.
Design, impact of engineering
A high number of design changes made during development could overwhelm ILS
planning and create an inability to reect ILS and O&S cost considerations fully in
engineering change decisions.
Design, invalid application of
component reliability and
maintainability (R&M) data
Design and manufacture determines the mean life and failure rate of components when
viewed in isolation. The consequences of improperly computed material replacement
rates are invalid labor requirements, incorrect supply support stockage lists, and
invalid repair level analyses.