Software Project Management

Software Project Management
Chapter 4
Risk Management
Index
▪ Introduction
▪ Risk identification
▪ Risk analysis
▪ Risk planning
▪ Risk monitoring
Risk management
▪ Risk management is concerned with identifying risks and drawing
up plans to minimise their effect on a project.
▪ A risk is a probability that some adverse circumstance will occur.
▪ Project risks affect schedule

▪ Product risks affect the quality or performance of the software
being developed
▪ Business risks affect the organisation developing or procuring

the software
The risk management process
▪ Risk identification – Identify project, product and business risks
▪ Risk analysis – Assess the likelihood and consequences of risks
▪ Risk planning – Draw up plans to avoid/minimise risk effects
▪ Risk monitoring – Monitor the risks throughout the project
Risk Risk analysis Risk planning Risk

identification monitoring
List of potential Risk avoidance Risk

Prioritised risk and contingency
risks list assessment
plans
Risk identification
▪ Technology risks
▪ People risks
▪ Organisational risks
▪ Requirements risks
▪ Estimation risks
Risks and risk types
Risk type Possible risks
Technology Th e database used in the system cannot process as man y
transactions per second as expected.
Software components which should be reused contain defects
which limit their functionality.
P eople It is impossible to recruit staff with the skills required.
K e y staff are ill and unavailable at critical times.
Required training for staff is not available.
Organisational Th e organisation is restructured so that different man agement
are responsible for the project.
Organisational financial problems force reductions in the project
budget.
Tools Th e code generated b y C A S E tools is inefficient.
C A S E tools cannot be integrated.
R equirements Changes to requirements which require major design rework are
proposed.
Customers fail to understand the impact of requirements
changes.
Estimation Th e time required to develop the software is underestimated.
Th e rate of defect repair is underestimated.
Th e size of the software is underestimated.
Risk analysis
▪ Assess probability and seriousness of each risk
▪ Probability may be
▪ very low
▪ low
▪ moderate
▪ high
▪ very high
▪ Risk effects might be
▪ catastrophic
▪ serious
▪ tolerable
▪ insignificant
Risk analysis
Risk Probability Effects
Organisational financial problems Low force Catastrophic

reductions in the project budget.
It is i m p o s s i b l e to recruit staff w i t h t h e skills High Catastrophic
required for the project.
K e y staff a r e ill at critical t i m e s i n t h e pr oj ect . Moderate Serious
Software components which should be reused Moderate Serious
contain defects w h i c h limit their functionality.
Changes to requirements which require major Moderate Serious
design rework are proposed.
The organisation is restructured so that High Serious
different ma n a g e me n t are responsible for the
project.
T h e database used in the system cannot process Moderate Serious
as m a n y transactions per second as expected.
T h e time required to d e v e l o p the software is High Serious
underestimated.
C A S E tools cannot be integrated. High Tolerable
C u s t o m e r s fail to u n d e r s t a n d the i m p a c t of Moderate Tolerable
requirements changes.
R e q u i r e d training for staff is not available. Moderate Tolerable
T h e rate of defect repair is underestimated. Moderate Tolerable
T h e size of the software is underestimated. High Tolerable
T h e c o d e generated b y C A S E tools is Moderate Insignificant
inefficient.
Risk planning
▪ Consider each risk and develop a strategy to manage that risk
▪ Avoidance strategies
▪ The probability that the risk will arise is reduced
▪ 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
Risk planning strategies
Risk Strate gy
Organ isationa l Prepare a briefing document for senior management showing
fi nanc ial problems how the project is making a very im portant contribu tion to the
goa ls of the bus iness.
Recru itm ent Alert customer of potential diffi culti es and the possibil ity of
problems delays, inves tiga te buy ing- in componen ts.
Staff illness Reorgan is e team so that there is more ove rlap of work and
peop le the refo re unde rstand each other ’s jobs.
Defective Replace pot entia lly defective componen ts wit h bough t-in
componen ts componen ts of known reli abilit y.
Requi rements Derive traceabili ty info rmation to assess requ ir ements chang e
chang es im pact, maximi se information hid ing in the design.
Organ isationa l Prepare a briefing document for senior manage ment show ing
restructuring how the project is making a very im portant contribu tion to the
goa ls of the bus iness.
Database Inves tigate the po ssibilit y o f buy ing a high er-perfo rmanc e
perfo rmanc e database.
Unde restim ate d Inves tigate buying in componen ts, inve stigate use of a program
deve lopment ti me gene rator.
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
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▪ A risk is a probability that some adverse circumstance will occur.

▪ Project risks affect schedule

▪ Business risks affect the organisation developing or procuring

▪ Risk analysis – Assess the likelihood and consequences of risks

▪ Risk planning – Draw up plans to avoid/minimise risk effects

▪ Risk monitoring – Monitor the risks throughout the project

Risk Risk analysis Risk planning Risk

List of potential Risk avoidance Risk

Organisational financial problems Low force Catastrophic

▪ The probability that the risk will arise is reduced

▪ Assess each identified risks regularly to decide whether or not

▪ Also assess whether the effects of the risk have changed

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