Gindorf, Thomas E. | Search NASA

NASA NTRS1996

Risk as a Resource: A New Paradigm

In the new NASA, risk management must be developed as a skill to a far greater degree than has existed in the past. Past approaches have produced great successes but at great cost and lengthy schedules. In the future, risk and its component contributors must be re-evaluated. There are three contexts of risk that will be addressed in this paper: risk as a resource, which expands and shifts traditional risk considerations; marginal cost of risk, which addresses the cumulative and time related effects of risk reduction; and an alternative definition or new meaning of success and how it relates to work.

risk management risk success mission risk↗

NASA NTRS1996

Risk as a Resource - A New Paradigm

NASA must change dramatically because of the current United States federal budget climate. The American people and their elected officials have mandated a smaller, more efficient and effective government. For the past decade, NASA's budget had grown at or slightly above the rate of inflation. In that era, taking all steps to avoid the risk of failure was the rule. Spacecraft development was characterized by extensive analyses, numerous reviews, and multiple conservative tests. This methodology was consistent with the long available schedules for developing hardware and software for very large, billion dollar spacecraft. Those days are over. The time when every identifiable step was taken to avoid risk is being replaced by a new paradigm which manages risk in much the same way as other resources (schedule, performance, or dollars) are managed. While success is paramount to survival, it can no longer be bought with a large growing NASA budget.

Risk Resource↗