Appendix B
Definitions
- Annual performance indicator
- A desirable outcome within the agency's objectives hierarchy having a time frame of one year or less.
- Continuous risk management
- A specific process for the management of risks associated with implementation of designs, plans, and processes throughout the life of a program or project.
- Cumulative opportunity
- The likelihood and benefit of being able to meet a specified element in the agency's objective hierarchy more satisfactorily than originally planned, or to meet a new goal or objective that better promotes the agency's mission.
- Cumulative risk
- The likelihood of not being able to meet a specified element in the agency's objective hierarchy, and the degree to which the element is not satisfied.
- Enterprise risk and opportunity management
- The methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives.
- Extended enterprise
- A program, project, or coordinated activity that involves multiple partners, or entities, with overlapping responsibilities. In addition to contributing to the same program/project/activity, each partner is an independent enterprise with its own set of strategic objectives and performance requirements.
- Extended organization
- The collection of organizational units that interact with a center. The center's extended organization includes the entities in all the extended enterprises with which the center interacts on program/project planning and execution, as well as other entities within or outside the agency that provide direction and administrative support to the center.
- Internal controls
- The set of policies and procedures that management uses to help programs, projects, and other activities within the organization to achieve results and safeguard the integrity of their operation.
- Lagging indicator
- A traceable measure that is quantifiable and correlates with the past performance of the organization with respect to one or more of its objectives.
- Leading indicator
- A traceable measure that is quantifiable, correlates as a predictor of the likelihood of future success of one or more of the agency's objectives, and is actionable.
- Multiyear performance goal
- A desirable outcome within the agency's objectives hierarchy having a timeframe of one to five years (commonly referred to at NASA as simply performance goal).
- Objectives hierarchy
- A tree-like structure of desired outcomes starting at the top with long-term strategic goals and progressing down to short-term tactical accomplishments (commonly referred to at NASA as strategic performance framework).
- Opportunity
- The possibility of an existing goal, objective, or desired outcome being met more efficaciously, or a new goal, objective, or desired outcome becoming feasible.
- Opportunity scenario
- A specific sequence of possible events that, if they should occur, would lead to an opportunity to either increase the likelihood of achieving an element in the agency's objectives hierarchy or open the possibility of defining a new objective that coincides with the agency's mission.
- Opportunity scenario statement
- A statement characterizing an opportunity scenario in terms of one or more conditions, enabling events or potential advances, affected entities, actions, benefits, and objectives affected.
- Parity statement
- A statement that defines risk and opportunity boundaries in terms of equivalent levels of discomfort or comfort.
- Performance indicator
- A type of lagging indicator that measures the efficiency and effectiveness of past actions with respect to accomplishing performance objectives.
- Portfolio
- A set of programs, projects, institutional assets, and other activities and resources that implement the high-level goals and objectives within the strategic plan.
- Portfolio performance review
- An internal, bottom-up assessment of how well the agency has performed against its strategic goals and other performance metrics, such as cost, schedule, contract, and technical commitments.
- Response boundary
- A measure of the likelihood and severity of a risk scenario or the likelihood and potential benefit of an opportunity scenario that would suggest that an action is imminently needed. A risk-response boundary marks the boundary between “marginal” and “intolerable” risk, and an opportunity response boundary marks the boundary between “marginal” and “significant” opportunity.
- Response trigger value
- A measure of a leading indicator that would suggest that an action is immediately needed. A leading indicator response trigger signals when a risk is progressing from “marginal” to “intolerable” or when an opportunity is progressing from “marginal” to “significant.”
- Risk
- The possibility of a goal, objective, or desired outcome not being met.
- Risk-informed decision making
- The use of risk analysis results to inform the selection of decision alternatives and to assure effective approaches for achieving goals and objectives.
- Risk scenario
- A specific concern, characterized as a sequence of possible events, that is perceived as presenting a risk to the ability to achieve an element of the objectives hierarchy.
- Risk scenario statement
- A statement characterizing a risk scenario in terms of one or more conditions, departure events, affected entities, and consequences.
- Strategic goal
- A desirable strategic outcome within the agency's objectives hierarchy having a time frame of 10 years or beyond.
- Strategic objective
- A desirable strategic outcome within the agency's objectives hierarchy having a time frame of 5 to 10 years or less.
- Strategic performance evaluation
- The evaluation of an organization's performance with respect to the achievement of its strategic goals and objectives.
- Strategic plan
- A document used to communicate with the organization the organization's goals and objectives, the actions needed to achieve them, the means for implementing those actions, and all of the other critical elements developed during the planning exercise.
- Strategic planning
- An organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy.
- Watch boundary
- A measure of the likelihood and severity of a risk scenario or the likelihood and potential benefit of an opportunity scenario that would suggest that an action should be considered but is not imminently needed. A risk watch boundary marks the boundary between “tolerable” and “marginal” risk, and an opportunity watch boundary marks the boundary between “insignificant” and “marginal” opportunity.
- Watch trigger value
- A measure of a leading indicator that would suggest that an action should be considered but is not imminently needed. A leading indicator watch trigger signals when a risk is progressing from “tolerable” to “marginal” or when an opportunity is progressing from “insignificant” to “marginal.”
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