PROJECT RISK MANAGEMENT

MOHSIN AZAM AFRIDI

AGENDA:

What is RISK?

What are Risk Types in Software Development?

What are the Sources of Risk?

How to Manage the Risk?

RISK?

• An unforeseen/future uncertain event or activity that can impact the project's progress, result or outcome in a positive or negative way. A risk can be assessed using two factors: impact and probability.

• Project Risk Management:• Risk management is the identification, assessment, and prioritization of risks followed by coordinated

and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.

CATEGORIES OF RISK :

• Schedule Risk:

• Wrong time estimation

• Resources are not tracked properly. All resources like staff, systems, skills of individuals etc.

• Failure to identify complex functionalities and time required to develop those functionalities.

• Unexpected project scope expansions.

• Budget Risk:

• Wrong budget estimation.

• Cost overruns.

• Project scope expansion.

(CONT’D)• Operational Risks:

Risks of loss due to improper process implementation, failed system or some external events risks.Causes of Operational risks:

• Failure to address priority conflicts

• Failure to resolve the responsibilities

• Insufficient resources

• No proper subject training

• No resource planning

• No communication in team.

• Technical risks:

• Running out of fund.

• Market development

• Changing customer product strategy and priority

• Government rule changes.

SOURCES OF RISKS IN SOFTWARE:

The Ten Top Universal Risk to Software projects are:

• 1. User involvement

• 2. Executive support

• 3. Requirements inflation (or scope creep)

• 4. Schedule flaws

• 5. Unrealistic expectations

• 6. Staff turnover

• 7. Project management

• 8. Specification breakdown

• 9. Technology and uncertainty

• 10. Not knowing what is stake.

• Risk Sources pdf:

HOW TO MANAGE RISK :

• Measure - realise what risks you face, assess their probability and impact.(budget,dates, other commitments)

• Minimise - identify what could be done to remove or reduce risks and do it.(Do something about it)

• Mention - speak to the sponsor, don't keep risks secret.(Who owns the project risk)

• Monitor - keep risks under review, monitor and reduce them as you go along.(use risk registers.+ don’t manage minor risks)

• Modify - share your experience, update your company's risk checklists.(check for every stage at end + project support function)

SOURCE:• http://www.hraconsulting-ltd.co.uk/risk-management.htm

• http://dl.acm.org/citation.cfm?id=548300

• http://en.wikipedia.org/wiki/Risk_management