Risk Management in Software Project

Riskit Method and SEI Method

Introduction
*The Definition of risk in software project?
Webster defines “risk” as “ the possibility
or injury”.
Risk in software project is defined as
exposure to harm and loss
*Why do we need risk management?
 Risk management can help us to avoid
software disaster, rework and overkill.

*Why do we need a formally risk management?

 Risks in different projects are individual
differences.
 Rely on project managers’ intuition and luck
are a poor substitute and consistent approach.
 Provides a number of benefits to the project
team.
*When does the risk management apply?
Start the risk management as soon as the
project starts.

*What are features of risk management?

 Risk is uncertain
 Risks in project can never be removed
 Risks can be control and reduced
 Riskit Method
Definition
 Riskit method is a comprehensive risk
management method.
Goal
 Riskit method focuses on stakeholder
goals by maintaining links between risks
and stakeholders explicitly.
 Riskit Method
Definition of Risk

Risk
Is characterized by is characterized by

Probability Loss
is defined by

Expectations
is valued by

Stakeholder
 Riskit Method Processes
Risk Management Mandate
Output -> why, what, when and whom
Goal Review
Output -> explicit goal definitions
Risk Identification
Output ->A list of “raw” risks
Risk Analysis
Output ->Completed Riskit analysis graphs
and ranked risk scenarios
 Riskit Method Processes
Risk Control Planning
Output->Selected risk controlling
actions
Risk Control
Output ->Reduced risks
Risk Monitoring
Output->Risk status information
Riskit Risk Management Cycle
Risk Mag mandate
Mandate Goal review
changes
changes goal

Monitoring changes revisions to goals

results Identification

Risk risk list of risks

Control monitor
matrices Analysis
selected
Control prioritized risk
action
planning
SEI Risk Management Method
Definition
Software risk management address the
entire lift cycle of software acquisition,
development, and maintenance.
Goal
To enable engineers, managers, and
other decision makers to identify risks
and to manage them on a time basis.
 SEI Risk Management
Paradigm
Identify
The taxonomy method consists
taxonomy-base questionnaire and a
process for its application.
Analyze
Analysis is the conversion of risk data
into risk decision-making information.
 Plan
Turns risk information into decisions and actions.
Track
Monitor the status if risks and the actions taken.
Control
Corrects deviations from planned risk actions.
Communicate
Communication lies at the center of paradigm.
SEI RISK PARADIGM
SEI RISK MANAGEMENT
PRINCIPLES
Global Perspective
Forward-looking View
Open Communication
Integrated Management
Continuous Process
Share Product Vision
Team Work
Differences of Two Methods
Riskit Method define a specific step –
risk management mandate.
Riskit Method define goals and
stakeholders for project.
Riskit method uses brainstorming,
checklist or benchmarking to identify
risks. SEI uses taxonomy questionnaire
method.
Riskit Method provides more graphical analysis, SEI
provide textual analysis is based on taxonomy
method
Risk Risk Risk Reaction
factor event Outcome

Utility Risk
loss Effect set
Differences of Two Methods
SEI focus on team member’s participation
SEI focus on the participation of suppliers and
customers
SEI method shares product vision
SEI method has open communication
SEI provides a continues risk management
 Simulations

Both of them provide precise definition of

risks.
The basic concepts for risk management are
the same
Both of them suggest a common risk
management framework
Both of them are systematical processes
Documentations are required
 Simulation
They all address project manager is not
the only person to participate risk
management.
 Conclusion
Risk management framework is
necessary.
Some basic steps are necessary—
identification, analysis, prioritization,
planning, control and monitoring.
Everybody who is related to this project
need to involve in risk management.
 Conclusion
Establish open communication for
employees to discuss risks.
Risk management should start before
the project starts.