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PMP Lecture 5

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22 views2 pages

PMP Lecture 5

Uploaded by

omaranwer2005
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Risk in Software Projects

Definition of Risk:
Risk is an expectation of loss, a potential problem that may occur in the future.
 It is generally caused by a lack of information, control, or time.
 Loss may include an increase in production cost, development of poor-quality products, or failure
to complete the project on time.

Types of Risks
Internal Risks: External Risks:
o Risks within the control of the project manager. o Risks beyond the control of the project manager.

Risks in Software Projects


 A software project can face various risks.
 Project Risks: Includes time, budget, and quality issues.
 It is essential to systematically identify significant risks affecting a project by classifying them
Technical Risks Business Risks
➢ concern potential method (functions), interfacing, testing, ➢contain risks of building an excellent product that no
and maintenance issue. one needs it, losing budgetary or personnel
➢ consists of an ambiguous specification, incomplete commitments.
requirements, changing specification, technical ➢Long development time leads to a potential risk of
uncertainty, and technical obsolescence. finding similar software in the market.
➢ appear due to the development team's insufficient
knowledge about the project

Managing Risks
1. Requirements Review:
o Helps balance functionality and scope creep.
o Common issues:
▪ Unclear requirements from stakeholders.
▪ Low-quality requirement presentations.
▪ Unverifiable requirements that cannot be tested.
2. Managing Risk in Code:
o Low readability of code and coherence among software components increases risk likelihood.
o High dependency between components raises the probability of risk.
3. Testing as Risk Management:
o Testing ensures the code satisfies requirements and contains no errors.
o Common testing risks:
▪ Insufficient test cases.
▪ Performing validation tests without defect or verification tests.

Software Development Life Cycle


Risk Management in Projects
• Risk Levels:
✓ High: The risk effect is very high and intolerable.
- The company might face significant losses.
✓ Medium: Tolerable but undesirable.
- The company may suffer financially, but the risk is limited.
✓ Low: Tolerable.
- Little or no external exposure or financial loss.

Risk Impact and Likelihood

Basic Methods for Risk Management


1. Avoid 2. Mitigate 3. Transfer 4. Accept
o Prevent the risk o Take actions to reduce the o Shift the risk to o If no other option
entirely to ensure it does impact of the risk. another party, such exists, accept the risk
not affect the project. For example: as buying insurance while being aware of
For example: Adjust deadlines considering or involving the its potential impact.
avoiding a project with potential delays, assign tasks client.
high potential damage. based on team skills

Risk Tracking and Monitoring


 Continuous tracking of risks from initiation to closure is essential.
 Project managers should always know the current risk status in their projects.

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