1. CSC 480 Software Engineering Lecture 5 September 3, 2004

2. Topics PSP2 Project Risk Management PSP3 Project Assignment

3. Risk Management A risk is a probability that some adverse circumstance will occur.  Project risks affect schedule or resources  Product risks affect the quality or performance of the software being developed  Business risks affect the organisation developing or procuring the software

4. Software Risks

5. Risk Management Process

6. The Four Risk Activities Identification Mindset: try to continually identify risks Retirement planning Prioritization Retirement or mitigation

7. Risk Identification Technology risks People risks Organisational risks Requirements risks Estimation risks

8. Risks and Risk Types

9. Risk Analysis Assess probability and seriousness of each risk Probability may be very low, low, moderate, high or very high Risk effects might be catastrophic, serious, tolerable or insignificant

10. Risk Analysis

11. Risk Planning Consider each risk and develop a strategy to manage that risk Avoidance strategies  Reduce the probability that the risk will arise Minimisation strategies  Reduce the impact of the risk on the project Contingency plans

12. Project finish Risk Management Mindset Project start IdentificationRetirement 2. “Java skills not high enough.” 1. “May not be possible to superimpose images adequately.” 1. Retirement by conquest: Demonstrate image super- imposition Risk 1 Risk 2 Risk 1 Project finish Risk 2 2. Retirement by avoidance: Use C++ Project start

13. Risk Management Strategies

14. Risk 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

15. Risk Factors

16. Risk Sources Ordered by Importance Lack of top management commitment Failure to gain user commitment Misunderstanding of requirements Inadequate user involvement Failure to manage end-user expectations Changing scope and/or objectives

17. Likelihood 1-10 1 = least likely Impact 1-10 1 = least impact Retire- ment cost 1-10 1 = lowest retirement cost Priority computation Resulting priority Lowest number handled first The highest priority risk 10 (most likely) 10 (most impact) 1 (lowest retiremen t cost) (11-10) *(11-10) *1 1 The lowest priority risk 1 (least likely) 1 (least impact) 10 (highest retiremen t cost) (11-1) *(11-1) *10 1000 Compute Risk Priorities