Agencies must apply a formal assessment of risk in planning new projects or programs. A rigorous risk assessment as part of the analysis of the proposal will inform the risk management strategy required for implementing the project or program (section 5.5).
Risk assessments identify a range of risks relevant to each of the options and identifying the effects of these occurring. These risks must be considered when evaluating options.
Agencies must document the assumptions, constraints and dependencies used in the development, analysis and evaluation of options at the earliest planning stages and continue to identify or refine these assumptions as part of the project management and delivery of the proposal.