RM in your Industry >

 Aerospace & Defence

Aerospace companies and defence agencies are becoming increasingly more concerned about the level of project cost overrun and time to delivery.

This, coupled with increasing project complexity, means that defence agencies, and government regulatory bodies, such as the OMB, and GAO, are putting more emphasis on risk management by the prime contractor.

Primes are now being monitored all the way from the pre-award tender through to sustainability and maintenance. In some cases, defence agencies and prime contractors, are applying award fees for meeting agreed targets in, for example, the level of risk exposure in technical performance or fuel consumption.

In turn prime contractors, using and sharing project wide risk management processes across the business, are seeing an upswing in the number of projects they win, the amount of award fees they win and the number of projects they ultimately deliver on schedule and within budget. This increases perceived and real reputation and shareholder value.

Active Risk Manager is one of the drivers that is helping aerospace companies and defence agencies realise this vision.

Top 5 ARM features used by the Aerospace & Defence Sector are:

• Two-way interface with Primavera and MS Project and Risk-adjusted Gantt Charts
• Schedule and Impact Monte Carlo Analysis on current and target levels of uncertainty and risk
  
• Provision Analysis to assess quantity and effectiveness of mitigation funds
  
• Consolidation and roll-up of risks, mitigation plans and responses at Project, Program, Business Unit and Corporate levels
  
• 9 levels of Security to facilitate access to suppliers and contractors without any conflicts of interest