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Risk management
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Risk Management |
| A Risk is any event or situation that would harm any
software development
project in some way. The goal of risk management is to limit the likelihood of something bad
happening to your software project. It's therefore something that all
software project
managers
should practice to safe guard the valuable
software project.
Our Risk Management includes formal
techniques,
methods,
and
tools
to enhance our abilities to deal with software risks. We help our valuable clients by monitoring
the risks on a
software development project
by using our various
tools.
The Top-10 Risks List is a simple tool that helps us and our customers monitor the risks on a
software project.
The list consists of 10 of the most serious risks to a project ranked from 1 to 10, each risk's
status, and a plan for addressing each risk. The act of updating and reviewing the Top-10 Risks
List each week raises the awareness of risks and contributes to the timely resolution of them. |
| Creating the Top-10 Risks list consists of the following: |
Risk Assessment: This consists of the following three parts:
- Risk Identification: The first step in producing the Top-10 Risks list is to
identify the factors that pose a risk to the project schedule. For example, a potential
risk with respect to requirement is that 'Requirements have been baselined but continue
to change' or 'Vaguely defined areas of the application are more time- consuming than
expected'.
- Risk Analysis: The next step is to assess the likelihood and impact of each risk
and the risk levels of alternate practices. A useful risk analysis practice is to determine
the "risk exposure" of each identified risk. Risk exposure is equal to the probability of
the unexpected loss multiplied by the size of the loss. For example, if there is a 25%
chance that it will take 4 weeks longer to get the project approved, then the risk exposure
is 1 week.
- Risk prioritization: produces a list of risks prioritized by impact. This list
serves as a basis for risk control.
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Risk Control: Risk control is made up of risk-management planning, risk resolution,
and risk monitoring.
- Risk Management Planning: produces a plan for dealing with each significant risk.
It also makes sure that the risk-management plans for each of the individual risks are
consistent with each other and with the overall project plan. The risk management plan can
be as simple as a paragraph for each risk that describes who, what, where, why, and how of
each risk's management.
- Risk resolution: The resolution of any particular risk depends a lot on the
specific risk. Sometimes it helps to investigate the risk further, or to collect more
information about the risk. This also includes developing the contingency plans to handle
the risk, in case it does not get resolved.
- Risk Monitoring: is the activity of monitoring progress toward resolving each risk.
We conduct a weekly risk assessment meeting to discuss the risk resolutions and to identify
the new risks.
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| While the essence of effective risk management is based on common sense and is employed to
some degree by
good project managers
everywhere, many formal
techniques,
software
development methods,
and
tools
can be used to enhance our abilities to deal with risks. Such
techniques
and
tools
span traditional areas such as cost estimating and
quality assurance
to less traditional ones such as organizational behavior and personal risk aversion. |
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