Not understanding risk

A classic symptom of the Entrenched Defence Bureaucracy. Granted the program was risky. Risk is OK if it is understood.

"Whatever the reasons for failing to change the procurement strategy,the impact on the program was to be profound. Navy now had a program, endorsed by Defence, with high risk factors in almost every facet of its development. In essence, they had opted to develop a Holden amongst submarines, a design uniquely suited to Australian conditions and with much promise, but carrying much more risk than the more limited but proven off-the-shelf designs. The need to achieve greater performance in certain areas to improve the usefulness of the submarines may have justified this decision. However, the failure to understand or to communicate its implications had the most profound influence on the development of the new submarines and for the Service became the root of both subsequent problems and much public grief."

Emphasis added.

A more recent example of risk not understood (or ignored) was the Wedgetail.

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