Risk Management
A risk is a problem- it happens, it might not. But in spite of outcome, it is really good to identify it, its probability of incident, estimate its impact, and establish a emergency plan should the problem actually occur.
Rick management is a software engineering practice with processes, methods, and tools for managing risk in a project. It provides a disciplines environment for proactive decision-making to:
i. Access continuously what can go wrong (risks).
ii. Determine what risks are important to deal with.
iii. Implement strategies to deal with those risks.
Risk involves the following two characteristics:
i. Uncertainty: The risk may or may not happen; that is, there are no 100% probable risks.
ii. Loss: If the risk becomes a reality, unwanted consequences or losses will occur.
Types of Risks
Classification 1
1) Project Risks: Project risks intimidate the project plan If project risks become real, it is likely that project schedule will slip and that costs will increase. Project risks identifying potential budgetary, schedule, personnel, resource, customer, and requirements problems and their impact on a software project.
2) Technical Risks: Technical risks intimidate the quality and timeless of the software o be produced. If a technical risk becomes a reality, implementation may become difficult or impossible. Technical risks identify potential design, implementation, interface, verification, and maintenance problems.
3) Business Risk: Business risks intimidate the viability of the software to be built. Business risks often jeopardize the project or the product. The top five business risks are:
i. Building an excellent product or system that no one really wants ( market risk)
ii. Building a product that no longer fits into the overall business strategy for the company
iii. Building a product that the sales force doesn’t understand how to sell.
iv. Losing the support of senior management due to a change In focus or a change in people
v. Losing budgetary or personnel commitment
Classification 2
1) Known Risks: Known risks are those that can be exposed after careful evaluation of the project plan, the business and technical environment in which the project is being developed, and other reliable information sources.
2) Predictable Risks: Predictable risks are extrapolated from past project experience.
3) Unpredictable Risks: These are the joker in the deck. They can and do occur, but they are extremely difficult to identify in advance.
Risk Principles
There are seven principles, which provide a framework for effective risk management:
i. Global perspective
ii. Forward-looking view
iii. Open communications
iv. Integrated management
v. Continuous process
vi. Shared product vision
vii. Teamwork.
Risk Strategies:
i. Reactive Risk Strategies: A reactive strategy monitors the project for likely risks. Resources are set away to deal with them, should they become actual problems.
ii. Proactive Risk Strategies: A proactive strategy begins long before technical work is initiated. Potential risks are identified, their probability and impact are assessed, and they are ranked by importance.
A risk is a problem- it happens, it might not. But in spite of outcome, it is really good to identify it, its probability of incident, estimate its impact, and establish a emergency plan should the problem actually occur.
Rick management is a software engineering practice with processes, methods, and tools for managing risk in a project. It provides a disciplines environment for proactive decision-making to:
i. Access continuously what can go wrong (risks).
ii. Determine what risks are important to deal with.
iii. Implement strategies to deal with those risks.
Risk involves the following two characteristics:
i. Uncertainty: The risk may or may not happen; that is, there are no 100% probable risks.
ii. Loss: If the risk becomes a reality, unwanted consequences or losses will occur.
Types of Risks
Classification 1
1) Project Risks: Project risks intimidate the project plan If project risks become real, it is likely that project schedule will slip and that costs will increase. Project risks identifying potential budgetary, schedule, personnel, resource, customer, and requirements problems and their impact on a software project.
2) Technical Risks: Technical risks intimidate the quality and timeless of the software o be produced. If a technical risk becomes a reality, implementation may become difficult or impossible. Technical risks identify potential design, implementation, interface, verification, and maintenance problems.
3) Business Risk: Business risks intimidate the viability of the software to be built. Business risks often jeopardize the project or the product. The top five business risks are:
i. Building an excellent product or system that no one really wants ( market risk)
ii. Building a product that no longer fits into the overall business strategy for the company
iii. Building a product that the sales force doesn’t understand how to sell.
iv. Losing the support of senior management due to a change In focus or a change in people
v. Losing budgetary or personnel commitment
Classification 2
1) Known Risks: Known risks are those that can be exposed after careful evaluation of the project plan, the business and technical environment in which the project is being developed, and other reliable information sources.
2) Predictable Risks: Predictable risks are extrapolated from past project experience.
3) Unpredictable Risks: These are the joker in the deck. They can and do occur, but they are extremely difficult to identify in advance.
Risk Principles
There are seven principles, which provide a framework for effective risk management:
i. Global perspective
ii. Forward-looking view
iii. Open communications
iv. Integrated management
v. Continuous process
vi. Shared product vision
vii. Teamwork.
Risk Strategies:
i. Reactive Risk Strategies: A reactive strategy monitors the project for likely risks. Resources are set away to deal with them, should they become actual problems.
ii. Proactive Risk Strategies: A proactive strategy begins long before technical work is initiated. Potential risks are identified, their probability and impact are assessed, and they are ranked by importance.