Software Risk

What is Risk? Management

"Tomorrow problems are today's risk." Hence, a clear definition of a
"risk" is a problem that could cause some loss or threaten the
progress of the project, but which has not happened yet.
These potential issues might harm cost, schedule or technical success
of the project and the quality of our software device, or project team
morale.
Risk Management is the system of identifying addressing and
eliminating these problems before they can damage the project.

For example, staff storage, because we have not been able to select
people with the right technical skills is a current problem, but the
threat of our technical persons being hired away by the competition is
a risk. Dr. Rakesh Kumar Arora 83
 Software Project
Risk Management Planning
A software project can be concerned with a large variety of risks. In
order to identify the significant risks which might affect a software
project, it is essential to classify risks into different classes. The
project manager can then check which risks from each class are
relevant to the project. There are three main classifications of risks
which can affect a software project:
1. Project risks
2. Technical risks
3. Business risks

Dr. Rakesh Kumar Arora 83

 Software Project
Project Risks: Planning
•Project risks concern varies sorts of monetary fund, schedule,
personnel, resource, and customer-related issues.
•As computer code is intangible, it’s tough to observe and manage a
computer code project.
•For any manufacturing program, such as the manufacturing of cars,
the plan executive can recognize the product taking shape.

Dr. Rakesh Kumar Arora 83

 Software Project
Technical Risks: Planning
These are the risks which affect the quality or performance of the
being developed. Technical risks concern potential method,
implementation, interfacing, testing, and maintenance issues.
Technical risks includes ambiguous specifications, incomplete
specification, dynamic specification, technical uncertainty, and
technical degeneration.

Business Risks:
These are the risks which affect the organization developing or
procuring the software. This type of risk embodies the risks of
building a superb product that nobody needs, losing monetary fund or
personal commitments, etc.
Dr. Rakesh Kumar Arora 83
 Software Project
Planning
Risk Management is an important part in project planning activities. It
involves identifying and estimating the probability of risks with their
order of impact on the project.
Risk Management Steps:
There are some steps which need to be followed in order to reduce
risk. These steps are as follows:

1. Risk Identification:
Risk identification involves brainstorming activities. It also involves
preparation of risk list. Brainstorming is a group discussion technique
where all the stakeholders meet together.
Preparation of risk list involves identification of risks that is occurring
continuously in previous software projects.

Dr. Rakesh Kumar Arora 83

 Software Project
Planning
2. Risk Analysis and Prioritization: During the risk analysis
process, one have to consider every identified risk and make a
perception of the probability and seriousness of that risk.

It is a process which consist of following steps:

1. Identifying the problems causing risk in projects
2. Identifying the probability of occurrence of problem
3. Identifying the impact of problem
4. Assigning values to step 2 and step 3 in the range of 1 to 10
5. Calculate the risk exposure factor which is product of values of step
2 and step 3
6. Prepare a table consisting of all the values and order risk on the
basis of risk exposure factor

Dr. Rakesh Kumar Arora 83

 Software Project
Planning
3. Risk Avoidance and Mitigation:
The purpose of this technique is to altogether eliminate the occurrence
of risks. The method to avoid risks is to reduce the scope of projects
by removing non-essential requirements.

4. Risk Monitoring:
In this technique risk is monitored continuously by re-evaluating the
risks, the impact of risk and probability of occurrence of risk.
This ensures that:
•Risk have been reduced
•New risk are discovered
•Impact and magnitude of risk are measured

Dr. Rakesh Kumar Arora 83