Includes index.

Machine generated contents note: Preface Introduction 1. An EROM Primer for Organizations Concerned with Technical Research, Integration, and Operations (TRIO Enterprises) 1.1 EROM Scope and Objectives for TRIO Enterprises 1.1 What is EROM? 1.1.2 Why is EROM important to TRIO enterprises? 1.1.3 What kinds of risk and opportunity are considered within EROM for TRIO enterprises? 1.1.4 How does EROM for nonprofit and Government TRIO enterprises differ from EROM for typical commercial enterprises? 1.1.5 To what extent does EROM work within the existing management structure of a TRIO enterprise? 1.1.6 How does EROM facilitate negotiations between a TRIO enterprise and the entities that provide funding and governance? 1.1.7 Can various management units within the organization separately apply EROM as though each were an enterprise? 1.1.8 In what areas does EROM facilitate strategic planning, implementation, and evaluation of performance for TRIO enterprises? 1.2 EROM Definitions and Technical Attributes for TRIO Enterprises 1.2.1 What is meant by "risk" and "opportunity" within the context of EROM? 1.2.2 How do we differentiate between risks and opportunities during strategic planning versus during plan implementation and performance evaluation? 1.2.3 How does EROM help achieve an optimal balance between risk and opportunity? 1.2.4 What is meant by the terms "risk scenario",," "opportunity scenario",," "cumulative risk",," and "cumulative opportunity"? 1.2.5 How does EROM incorporate Risk-Informed Decision Making and Continuous Risk Management within the organization as a whole and within different management units? 1.2.6 Is the analysis in EROM principally qualitative or quantitative? 1.2.7 Can EROM account for unknown and underappreciated (UU) risks? 2. Coordination of EROM with Organizational Management Activities 2.1 The Executive, Programmatic, and Institutional/Technical Management Functions and their Interfaces 2.2 EROM-Relevant Management Activities 2.2.1 Activities within Each Management Level 2.2.2 Roles and Responsibilities within and between Each Management Level 2.3 Coordination of EROM with Management Activities 2.3.1 Organizational Planning and Plan Implementation 2.3.2 Evaluation of Organizational Performance and Re-Planning 2.3.3 Alignment with Management Level Roles and Responsibilities 2.4 Communication across Extended Partnerships 2.4.1 Nature of the Strategic Objectives that Require Extended Partnerships 2.4.2 The Challenges of Conducting EROM across Extended Partnerships 2.5 Contribution of EROM to Compliance with Federal Regulations and Directives 2.5.1 OMB Circular A-11 and GPRAMA (Government Performance, Results, and Budgeting) 2.5.2 OMB Circular A-123 and the Required Statement of Assurance (Management's Responsibility for Internal Control) 2.5.3 Draft of the New Issue of OMB Circular A-123 3. Overview of EROM Process and Analysis Approach 3.1 Organizational Objectives Hierarchies 3.1.1 Objectives Hierarchies for Each Management Unit 3.1.2 Objectives Hierarchy for the Enterprise as a Whole 3.2 Populating the Organizational Objectives Hierarchies with Risk and Opportunity Information 3.3 Establishing Risk Tolerances and Opportunity Appetites 3.3.1 Risk and Opportunity Parity Statements 3.3.2 Response Boundaries and Watch Boundaries 3.4 Identifying Risk and Opportunity Scenarios, and Leading Indicators 3.4.1 Risk and Opportunity Taxonomies 3.4.2 Risk and Opportunity Scenario Statements 3.4.3 Risk and Opportunity Scenario Narratives 3.4.4 Risk and Opportunity Leading Indicators 3.4.5 Leading Indicators of Unknown and Underappreciated (UU) Risks 3.5 Specifying Leading Indicator Trigger Values and Evaluating Cumulative Risks and Opportunities 3.5.1 Leading Indicator Trigger Values 3.5.2 Cumulative Risks and Opportunities 3.6 Identifying and Evaluating Risk Mitigation, Opportunity Exploitation, and Internal Control Options 3.6.1 Deducing Risk and Opportunity Drivers 3.6.2 Deducing Risk and Opportunity Scenario Drivers 3.6.3 Evaluating Risk and Opportunity Scenario Likelihoods and Impacts 3.6.4 Identifying Options for Risk Response, Opportunity Action, and Internal Control 3.6.5 Evaluating Options for Risk Response, Opportunity Action, and Internal Control 4. The Development and Utilization of EROM Templates for Performance Evaluation and Strategic Planning 4.1 Overview 4.2 Demonstration Example: The NASA Next Generation Space Telescope as of 2014 4.3 Example Objectives Hierarchies 4.3.1 Objectives Hierarchies for Different Management Levels 4.3.2 Integrated Organizational Hierarchy for the Enterprise as a Whole 4.4 Risks, Opportunities, and Leading Indicators 4.4.1 Known Risk and Opportunity Scenarios 4.4.2 Cross-Cutting Risks and Opportunities 4.4.3 Unknown and Underappreciated Risks 4.5 Example Templates for Risk and Opportunity Identification and Evaluation 4.5.1 Risk and Opportunity Identification Template 4.5.2 Leading Indicator Evaluation Template 4.6 Example Templates for Risk and Opportunity Roll-Up 4.6.1 Objectives Interface and Influence Template 4.6.2 Known Risk Roll-Up Template 4.6.3 Opportunity Roll-Up Template 4.6.4 Composite Indicator Identification and Evaluation Template 4.6.5 UU Risk Roll-Up Template 4.7 Example Templates for the Identification of Risk and Opportunity Drivers, Responses, and Internal Controls 4.7.1 Risk and Opportunity Driver Identification Template 4.7.2 Risk and Opportunity Scenario Likelihood and Impact Evaluation Template 4.7.3 Risk Mitigation, Opportunity Action, and Internal Control Identification Templates 4.7.4 High- Level Display Template 4.8 Upward Propagation of Templates for Full-Scope EROM Applications 4.8.1 Scope of the Problem 4.8.2 Propagation of Templates 4.8.3 Development of an Integrated EROM Database 4.9 Application of the Templates to Organizational Planning and the Selection from among Alternative Candidate Portfolios 5. Management and Implementation of EROM at the Institutional/ Technical Level (Technical Centers or Directorates) 51 EROM from a Technical Center's Perspective 5.2 Extended Enterprises and the Technical Center's Extended Organization 5.2.1 Overview 5.2.2 Relationship of Each Technical Center to the Other Entities in the Center's Extended Organization 5.2.3 EROM Organizational Structure for a Technical Center's Extended Enterprises 5.2.4 Challenges of Creating and Managing an Integrated Database 5.3 EROM-Informed Budgeting of Resources across a Technical Center's Extended Organization 5.3.1 Objectives-Based Distribution of Human, Physical, and Instructional Assets 5.3.2 Representative Templates for Distributions of Allocated Assets 5.3.3 Asset Risks, Opportunities, and Risk/Opportunity Scenario Statements 5.3.4 Leading Indicators of a Technical Center's Health 5.3.5 Correlations between Internal Leading Indicators and Gaps in the Distributions of Human, Physical, and Instructional Assets 5.3.6 Optimization of the Acquisition, Allocation, and Retirement of Human, Physical, and Instructional Assets 5.3.7 Relevance to Provider Acquisition Decisions Made by Technical Centers 6. Special Considerations for EROM Practice and Analysis at Commercial TRIO Enterprises 6.1 Overview 6.2 Risk and Opportunity Scenarios and Leading Indicators 6.2.1 Risk and Opportunity Taxonomies 6.2.2 Risk and Opportunity Branching Events and Scenario Event Diagrams 6.2.3 Risk and Opportunity Templates 6.2.4 Risk and Opportunity Matrices 6.3 Controllable Drivers, Mitigations, Actions, and Internal Controls 7. Examples of the Use of EROM for Informing Risk Acceptance Decisions 7.1 Overview 7.2 Example 1: DoD Ground-based Midcourse Missile Defense in the 2002 Timeframe 7.2.1 Background 7.2.2 Top-Level Objectives, Risk Tolerances, and Risk Parity 7.2.3 Risks and Leading Indicators 7.2.4 Leading Indicator Trigger Values 7.2.5 Example Template Entries and Results 7.2.6 Implications for Risk Acceptance Decision Making 7.3 Example 2: NASA Commercial Crew Transportation as of 2015 7.3.1 Background 7.3.2 Top-Level Objectives, Risk Tolerances, and Risk Parity 7.3.3 Remainder of Example 2 7.4 Implication for TRIO Enterprises and Government Authorities 8. Independent Appraisal of EROM Processes and Results to Assure the Adequacy of Internal Controls and Inform Risk Acceptance Decisions 8.1 Background 8.1.1 OMB Motivation 8.1.2 Department of Energy Guidance 8.1.3 Institute of Internal Auditors Guidance 8.2 Queries for an Independent Appraisal of EROM in the Contexts of Internal Control and Risk Acceptance 8.2.1 Overview 8.2.2 Template for Evaluating EROM Process and Results 9. A Brief Overview of the Potential Integration of EROM with Other Strategic Assessment Activities 9.1 Technical Capabilities Assessment (TCA) 9.2 Strategic Annual Review (SAR) 9.3 Baseline Performance Review (BPR) Appendix A - Acronyms Appendix B - Definitions References About the Author.

"Risk management strategy for the pioneering technological sector Enterprise Risk and Opportunity Management provides much-needed guidance tailored specifically to the technological sector. While most enterprise risk management guides are written for traditional businesses and finance firms, this book translates effective enterprise risk and opportunity management (EROM) principles into strategies and practices that work for government, nonprofit, and for-profit organizations in the technological space. Originally designed for noncommercial pioneering enterprises like NASA, an entire chapter is now devoted toward applying the methods to profit-making technological enterprises. A 40-year veteran of the tech sector, Dr. Allan Benjamin outlines risk management strategies for organizations in which the advancement and integration of science and technology within complex systems is necessary for accomplishment of the mission. Commercial EROM strategies do not translate directly when the development and implementation of risky technologies is the organization's primary objective, and clumsy or near-sighted implementation can easily cripple progress. This book provides authoritative guidance tailored to the sector's specialized needs. Maximize opportunity while effectively managing risk Understand the core principles of the technological EROM approach and its interfaces with the management of the organization Comprehend the intricacies of aggregating risks and opportunities from lower to higher levels of the organization Gain expert insights specific to the technology sector Mitigate and control the risk that comes with pursuing discovery In practice, EROM in this sector involves working with mostly qualitative data, and is characterized by high uncertainty. Managing risk without handicapping the organization requires a specific set of adjustments to traditional EROM, and a more nuanced approach to the idea of "acceptable risk. Balance is key in technological EROM, and Enterprise Risk and Opportunity Management provides foundational guidance, real-world strategy, and enlightening examples for getting it right"--