1. Identifying and Prioritizing Risks
Submitted By,
S. Anitha Devi
M.E-CSE

2. Risk Identification Most common schedule risks Feature creep
Gold-plating (requirements/developer)
Shortchanged QA
Overly optimistic schedules
Inadequate design
Silver-bullet syndrome
Research-oriented development
Weak, poorly-trained personnel
Contractor failure
Friction between developers & customers

3. Risk Identification Potential Schedule Risks Schedule Creation
Organization and Management
Development Environment
End-users
Customer
Contractors
Requirements
Product
External Environment
Personnel
Design and Implementation
Process

4. Risk Identification Identify risks that could impact performance
Brainstorming
Review of past projects
Industry risk templates
Personal experience
Fishbone diagrams

5. Typical Risk Categories
Technical Feasibility
Political and External Market
Financial and Economic
Legal and Contractual
Human Behavior
Scope and Schedule
Project Organization

6. Technical/Feasibility Risks
Organizational lack of familiarity with the technology
Relative level of technical complexity
Maturity of the technology (new vs. tried and tested)
Interconnectivity of technology with existing systems
Existing assets are underutilized in this project
Obsolete approach for program delivery
Customer demand projections incorrect
Uncertainty over customer ownership and control

7. Political/External Risks
Marketplace Positioning/competition
Regulatory Environment unfavorable
Customer Corporate/Organizational changes in priorities
Customer Commitment/viability of project
Changes in decision makers
Natural Hazards
Political changes (new laws, tax policies etc.)

8. Financial/Economic Risks
Project costs can exceed budget
High inflation or cost increases
Customer bankruptcy
Cash flow profile unfavorable
Funding not approved by customer
Excessive price fluctuation on imported components
Required investment too high for return

9. Legal and Contractual Risks
Breach of contract/termination's
Penalty clauses
Excessive warranties
Contract claims/failure to perform
Contract disputes escalation procedure inadequate
Excessive liability
Patent/copyright infringement
Team unfamiliar with procurement method

10. Human Behavior Risks Unavailability of Internal technical expertise
Unavailability of External technical expertise
Lack of staff support for project
Delays in customer approvals
Delays in documentation
Actions by labor unions

11. Scope and Schedule Risks
Unreality of stated deadlines
Inadequate project definition
Standards incompatible with requirements
Design incorporates high maintenance materials
Lack of resource availability
Lack of product availability
Poor coordination of resources
Requirement inflexibility

12. Project Organization Risks
Unavailability of key project personnel
Change of key customer personnel
Unsatisfactory choice of subcontractors
Engineering design not kept to schedule
Inadequate coordination of partners and subcontractors
Staff not trained in time
Inadequate contract documentation
Inadequate security of site during installation

13. Risk Assessment Likelihood of occurrence Impact of occurrence
Brainstorming
History
Personal experience

14. Probability or Likelihood of Occurrence

16. THANK YOU