Bryan S. Ware

1
Risk Optimized Solutions
Metricon 1.0Model Concepts for Consideration and
Discussion
Presented by Bryan S. Ware Bware_at_dsbox.com www.ds
box.com
2
Digital Sandbox Risk Optimized Investment Matrix
1
6
Risk Measure
Allocation within Quadrants
Discount for low effectiveness
High
Best investments
I
II
5
Risk
Allocation to Quadrants
III
IV
2
Low
Apply minimum funding
Incentivize high effectivenss
Risk Threshold
Low
High
4
3
Effectiveness Threshold
Effectiveness
Effectiveness Measure
3
2x2 Matrix Approach
Higher risk, lower effectiveness
Higher risk, higher effectiveness
Risk
Lower risk, lower effectiveness
Lower risk, higher effectiveness
Risk Data
Effectiveness
Frequency
Score
Effectiveness Data
4
Combining Risk and Effectiveness

• Selected approach for combining risk and
  effectiveness to determine final allocations is
  2x2 matrix
• Creates set of plausible options by considering
  high and low cases of two competing needs
• Benefits
• Optimizes ability to allocate resources based on
  relative risk and proposed solutions to address
  identified need
• Supports management objectives
• Creates incentives to building well-planned,
  solid proposals