Risk Management

If you don't actively attack the risks, they will actively attack you. -Tom Gilb Risk is the possibility of suffering loss, injury, disadvantage, or destruction.

Risk management is concerned with identifying risks and drawing up plans to minimise their effect on a project. Task of project manager is to anticipate risks which might affect the development schedule or quality of current project. The result of the risk analysis should be documented in the project plan. It should discussed.. Identify the risk and minimise their effect on the project is called RISK MAMAGEMENT.

Why Do Risk Management * Eliminate surprises * Prevent problems * Begin coding in right track * Reach business goal

Type of Risks It affect the project schedule or resources  Project Risk … PProduct Risk… => Business Risk…

Project Risks It affect the project schedule or resources  Staff turnover … MManagement Change… => Hardware Unavailability…

Product Risk It affect the quality or performance of the software being developed.  Requirement Change … DDelay in producing the specifications … SSize Underestimate … => Problem in CASE tools …

Business Risk It affect the organisation developing or procuring the software.  Technology Change …  Product competition (product line) …

The Process of Risk Management  Risk Identification … Identify project, product and business risks; isk Analysis … A ssess the consequences of these risks ; isk Planning … D raw up plans to avoid or minimise the effects of the risk; isk Monitoring … M onitor the risks throughout the project;

The Process of Risk Management

Risks Identification  Technology risks… Risks which derive from S/W or H/W technologies.. Used in the proj devlp (Tool Risk=S/w or CASE) PPeople risks. People in the dev team. OOrganisational risks. RRequirements risks. Change of customer requirements. =>Estimation risks. Org estimate the sys characteristics, required resources.

Risks Analysis Assess probability and seriousness of each risk. Probability may be very low, low, moderate, high or very high. Very low( < 10%). Low ( 10-25%). Moderate ( 25-50%). High (50-75%). Very high ( >75%). Risk effects might be catastrophic, serious, tolerable or insignificant.

Risks Planning Consider each risk and develop a strategy to manage that risk. That strategies are.. Avoidance strategies The probability that the risk will arise is reduced,(e.g.) it dealing with defective components Minimisation strategies The impact of the risk on the project or product will be reduced; Contingency plans If the risk arises, contingency plans are plans to deal with that risk;

Risks Monitoring Assess each identified risks regularly to decide whether or not it is becoming less or more probable. Also assess whether the effects of the risk have changed. Each key risk should be discussed at management progress meetings (review).

Presented By : J i j e s h N. S

Presented By : J i j e s h N. S