What is a Risk in Risk Management?
Risk is made up of two parts
- The probability of something going wrong and
- The negative consequences if it does.
“Project Risk” is a problem that could cause some lose or threaten the success of a software project, but which has not happened yet. These problem can drastically impact on the schedule, cost or technical success of the software project, the quality of software product or project team Morale.
Categories of Risk:
- 1) Project Risk:These are those risk that affect the project schedule or resources .
Example: Loss of an experience coder.
So finding a replacement coder with the appropriate skills and experience automatically take long time in completion.
- 2) Product Risks:This affect the Quality or Performance of the software being developed.
Example: Low Performance
Developed product do not performing as expect with effect overall performance of the system.
- 3) Business Risks:Risks that affect the organization developing or loss of software.
Example: Introduction of a new product by competitor.
Sale of a product affected with the launch of some kind of product bike competitor which majorly affect the business and its earning of software.
Types of Risks:
1) Requirement Risk: Rapidly change or unclear requirement Create the large risks. This risk mostly failed or delayed the projects. Competitive forces, business agreements with new partners for the organisation and it software system to change.
2) Technology Risk: It is found that Technology sometime unable to fulfill the system requirement. Example: Suppose an organisation work on PHP and Ms SQL. But a project needs or require features beyond the limitations of PHP and MSSQL which create project to be failed.
3) Business Risk: This kind of risks are basically introduce by business decisions.
- Conflict with suppliers
- not signing deals on time
- not fulfilling promises
4) Political Risk: This happens because big or high authority people misuse the power which influence the product.
5) Resource Risk: This risk causes delay in project.
6) Skills Risk: unfamiliar with Technology:- Team have no computer idea of technology which going to be used on project which automatically affect the product.
7) Deployment And Support Risks: The project may not be deployed after product is ready since the required product is not in place.
- Support team not ready for training or are over stretched. <
- Working closely with other developing team also a threat to project.
8) Integration Risks: Most application need to integrate with other application. Miscommunication and misunderstanding cause systems not to share accepted interface and they do not work together as expected.
9) Schedule Risk: Schedule may contain conflict component which are not available when necessary, the delivery date is happening at an extremely busy time. Communication between all the interested parties can help reduce this risks.
10) Maintenance And Enhancement Risk: The project cannot be maintained and enhance properly because of adequate documentation. The support team was not properly trained or technical platform is obsolete.
11) Design Risk: Bad design decision had an impact on the system performance or it ability to satisfy the requirements.
12) Other Risks: This is a catch all for risks that are hard to foresee and predict. Example: Could be a Hurricane or natural disaster forces to shutting down the organization for a week.
- Fire in building, development server crashing, virus attack.