PRESENTATION ON

RISK MANAGEMENT
Submitted by:-
Sarmistha Das
Branch:- CSE
ID:-1730401041
Semester:- 6th sem
RISK
 Risk is a potential problem-it might
happen, it might not.
 Risk concerns future happenings.
 Risk involves change.
 Risk involves choice and the uncertainty
that choice entails itself.
 We can not eliminate the risk properly
,but we can try to minimize it.
RISK MANAGEMENT
 Risk analysis and management are actions
that help a software team to understand
and manage uncertainty.
 Many problems can plague a software
project. Regardless of outcome, it’s a
really good idea to identify the risk, asses
its probability of occurrence and estimate
its impact.
RISK STRATEGIES
Risk strategies are of two types:-
 Reactive risk strategy
◦ Monitors the project for likely risks.
◦ Resources are set aside to deal with risks when
they become actual problem.
◦ Software team does nothing about risks until
something goes wrong .Then ,the team attempts
to correct the problem, this is often called a fire
fighting mode.
◦ When team fails to solve the problem ,“crisis
management” takes over and the project is in
real jeopardy.
 Proactive risk strategy
◦ Better than reactive risk strategy.
◦ Begins long before technical work is initiated.
◦ Potential risks are identified, their probability
and impacts are assessed and ranked by
importance.
◦ Software team establishes a plan for managing
risks.
Software Risks
 Risk always involves:
◦ Uncertainty- the risk may or may not happen.
◦ Loss- if the risk become reality, unwanted
consequences and losses will occur.
 When risks are analyzed ,it is important
to quantify the level of uncertainty and
the degree of loss associated.
Types of Risks
 Project risk
 Technical risk
 Business risk
 Known risks
 Predictable risks
 Unpredictable risk
Project Risk
 Threaten the project plan.
◦ If the risks become real, it is likely that the
project schedule will slip and the costs will
increase.
 Risk factors:
◦ Potential budgetary
◦ Schedule personnel
◦ Resource
◦ Stakeholders
◦ Project complexity and size
◦ Degree of structural uncertainty.
Technical Risk
 Threaten the quality and timeliness of the software to
be produced.
 If a technical risk become a reality, implementation
may become difficult and impossible.
 Technical risks occur when the problem is harder to
solve than you thought it would be.
 Risk factors:
◦ Potential design and implementation
◦ Interface
◦ Verification
◦ Maintenance problems
◦ Specification ambiguity
◦ Technical uncertainty
Business Risk
 Threaten the viability of the software to be built
and often jeopardize the project or product.
 Top five business risks are:
1. Market risk :-building an excellent product or system
that no one really wants.
2. Strategic risk :-building a product that no longer fits
into the overall business strategy for the company.
3. Sales risk :-building a product that the sales force
doesn’t understand how to sell.
4. Management risk :-losing the support of senior
management due to change in focus or a change in
people.
5. Budget risk :-losing budgetary or personnel
commitment.
Known Risk
Those that can be uncovered after careful
evaluation of the project plan, the
business and technical environment in
which the project is being developed ,and
other reliable information source.
e.g. unrealistic delivery date ,lack of
documented requirements ,poor
development environment.
Predictable Risk
 Risks that ere extrapolated from past
project experience.
e.g. staff turnover ,poor communication
with the customer ,dilution of staff effort
as ongoing maintenance requests are
serviced.
Unpredictable Risk
 Risks that are extremely difficult to
identify in advance (joker in the desk).
RISK PROJECTION /RISK
ESTIMATION
 Attempts to rate each risk in two ways:
i. Probability that the risk is real.
ii. Consequences of the problems associated with the
risk.
 There are four risk projection steps intended to
consider risks in a manner that leads to
prioritization.
◦ Estimate a scale that reflects the perceived probability
of a risk.
◦ Delineate the consequences of the risk.
◦ Estimate the impact of the risk on project and
product.
◦ Asses the overall accuracy of the risk projection.
RISK EXPOSURE(RE)
RE=P*C
P=probability of occurrence for each risk
C=cost of project when risk occurs
 Risk Exposure can be computed for each
risk, once the estimation of the cost of the
risk is made.
 The total RE for all the risks can provide a
mean for adjusting the final cost.
 RE can be used to predict the probable
increase in staff resources required at
various points during the project schedule.
CONCLUSION
 To manage the risks we need to establish a
strong bond between the customers and the
team members.
 A strong base about risk management would
help a great deal in tackling the risks.
 Software metrics and tools can be
developed to manage the risks.
 Risk necessarily need not be negative and it
can be viewed as an opportunity to develop
our projects in a better way.
THANK YOU