BAIT3153 Software Project Management (032018)

Tutorial 7: Risk Management

Question 1
Risk management is one of the most important jobs for a project manager. With the aid of relevant
example(s), discuss the major processes that a project manager needs to perform in managing project
risks.

Major activities involved in Software Risk Management are:

 Risk management planning: deciding how to approach and plan the risk management activities for the
project
 Risk identification: determining which risks are likely to affect a project and documenting their
characteristics
 Qualitative risk analysis: characterizing and analyzing risks and prioritizing their effects on project
objectives
 Quantitative risk analysis: measuring the probability and consequences of risks
 Risk response planning: taking steps to enhance opportunities and reduce threats to meeting project
objectives
 Risk monitoring and control: monitoring known risks, identifying new risks, reducing risks, and
evaluating the effectiveness of risk reduction

Question 2
A web project has been requested to be developed in PHP. However, your project team members are only
familiar with ASP.net and you, as a project manager, have decided to build the web project by using
ASP.net. Explain the risk response strategy that describes the above decision.

The response strategy used is risk avoidance, which involves eliminating a specific threat or risk, usually
by eliminating its causes.

Example, development team decided to use familiar language or technology to reduce significant risk for
failure of project.

Question 3
Compare and contrast the following:
 Reactive and Proactive risk strategy
 Qualitative risk analysis and Quantitative risk analysis

Reactive risk: Qualitative risk analysis: characterizing and

actions and plan to deal with risks only when analyzing risks and prioritizing their effects on
problems arise project objectives.

Proactive risk Quantitative risk analysis: measuring the

Avoid risk probability and consequences of risks
BAIT3153 Software Project Management (032018)

Question 4 [2017 April, Q4b]

(a) Assume that you have identified the following 2 risks in the project:
 High staff turnover, and Human error caused by staff
Any ONE possible risk mitigation actions. In your answers, elaborate how the proposed actions can help
to mitigate the risks.
High staff turnover Human error caused by staff
 Conduct informal meeting with current staff to  Introduce peer reviews checking in which team
find out main cause for turnover. Solve it by members evaluate each other’s work products for
taking the necessary further actions to address technical quality and content. This would enable
the issues identified (improve working more errors to be discovered and then rectified.
conditions, increase pay or other benefits, etc).

(b) Consider the following risk table:

Ref Risk Probability of *Impact on the Risk level
Occurrence (%) project (0 to 10)
a. Unstable database 50% 6 3.0
b. Inadequate software architecture 80% 3 2.4
c. Bugs and error caused by staff 60% 7 4.2
d. Constant changes in requirements 10% 2 0.2

*Impact on the project (0 to 10): 0 means negligible and 10 means catastrophic.

You are required to:
 Rank the given risks in terms of their priority (i.e. from highest risk to lowest risk). Show your
working to illustrate how you arrived at this answer.

 For the risk with the highest priority, propose ONE (1) preventive measure.

Probability of *Impact on the

Ref Risk Risk Level
Occurrence (%) project (0 to 10)
c. Bugs and error caused by staff 60% 7 4.2
a. Unstable database 50% 6 3.0
b. Inadequate software architecture 80% 3 2.4
d. Constant changes in requirements 10% 2 0.2

The risk with the highest priority is “Bugs and error caused by staff”.
Introduce peer reviews checking in which team members evaluate each other’s work products for
technical quality and content. This would enable more errors to be discovered and then rectified.
BAIT3153 Software Project Management (032018)

Question 5 [2016 April, Q4b]

Identify the TWO (2) risks. For each risk, identify the probability, impact, and a proposed risk
mitigation, monitoring and management (RMMM) plan. Present your answer using the format of the risk
table shown below:
Identify 2 risks,
Risk Probability Impact RMMM
Unclear of 50% 2 Mitigation: Use prototyping to confirm customer requirements that are
clients’ unclear
requirements
Monitoring: Observe and record users’ response during prototyping
demos

Management: Prototyping to obtain feedback from users; Feedback is

incorporated into improving the system

New 30% 2 Mitigation: Conduct research or survey for the development tools
development (android studio, etc.) available in market before using it.
tool (mobile)
Monitoring: Preview, compare and testing the tool before use for
development. Consult consultant’s opinion

Management:
Hire consultant to keep track the progress of the development

Impact values: 1 – catastrophic; 2 – critical; 3 – marginal; 4 - negligible