Letter
At War & Transforming
Strategic Environment
The Army, Serving Today
Realizing the Army Vision
People
Readiness
Transformation
A Commitment to the Future
Addendum
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The 2003 United States Army Posture Statement
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BALANCING RISK AS WE MANAGE CHANGE

Balancing risk is integral to Army Transformation. To maintain current readiness while we transform, we are managing operational risk: risk in current readiness for near-term conflicts with future risk – the ability to develop new capabilities and operational concepts that will dissuade or defeat mid- to long-term military challenges. The Army has accepted risk in selective modernization and recapitalization, and we continue to assess these risks as we balance current readiness, the well-being of our people, Transformation, the war on terrorism, and new operational commitments. Since 1999, The Army has terminated 29 programs and restructured 20 others for a total savings of $12.8B. These funds were reallocated to resource the Stryker Brigades and essential Objective Force research and development.

In Program Budget 2004 and its associated Five-Year Defense Plan (FYDP), The Army has generated an additional $22B of savings by terminating 24 additional systems and reducing or restructuring 24 other systems. To accelerate achieving the Objective Force capabilities and mitigating operational risk, The Army reinvested these savings in the development of transformational capabilities in these and other programs:

  • Future Combat System - $13.5B

  • Precision Munitions - $3.2B

  • Sensors and Communications - $2.3B

  • Science and Technology - $1.1B

  • Missile and Air Defense - $1.1B

The operational risk associated with the decreased funding for certain current programs is acceptable as long as we field Stryker Brigades on schedule and accelerate the fielding of the Objective Force for arrival, this decade. We will continue to reassess the risk associated with system reductions and related organizational changes against operational requirements and the strategic environment.

 

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