Risk Management

What is Risk?
Risks are potential problems that may affect successful
completion of a software project.
Risks involve uncertainty and potential losses.
Risk analysis and management are intended to help a
software team understand and manage uncertainty during the
development process.

Risk Management
The Risks we encounter in a project should be resolved so that we
are able to deliver the desired project to the customer.
The project should be managed in such a way that the risks dont
affect the project in a big way.
The art of managing the risks effectively so that the WIN-WIN
situation and friendly relationship is established between the team
and the customer is called Risk Management.
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Contingency Plan
A contingency plan is a plan devised for an outcome
other than in the usual (expected) plan. [1]
Risk reduction activities have only small impact in reducing
the probability of occurring some risks.
For example: If a staff is absent in a firm, because of the
illness, then some of the mangers encourage their
employees to adopt a healthy life style.
These kinds of risk needs a contingency plan..
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 In general, It is a planned action that is to be carried out if

particular risk materializes.
The cost of the contingency measure will only be incurred
if the risk actually materializes.
There may be some things that we have to done in advance
for adopting contingency action to be feasible.
Eg. Taiking backups of database in specific period as a
preventive measure, if any corruption will occur in it on
future days.

Risk Actions
There are many risks involved in creating high quality software on time
and within budget. However, in order for it to be worthwhile to take these
risks, they must be compensated for by a perceived reward. The greater
the risk, the greater the reward must be to make it worthwhile to take the
chance.
In software development, the possibility of reward is high, but so is the
potential for disaster. The need for software risk management is illustrated
in Gilbs risk principle. If you dont actively attack the risks, they will
actively attack you" [Gilb-88]. In order to successfully manage a
software project and reap our rewards, we must learn to identify, analyze,
and control these risks
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During the action step, we implement the risk reduction plan.

Individuals execute their assigned tasks. Project effort estimations
are adjusted to take into consideration additional effort needed to
perform risk reduction activities or to account for projected
additional effort if the risk turns into a problem.
Whatever the counter-measures that are considered that must be
cost-effective.
The cost effectiveness of the risk reduction can be accessed by
calculating Risk Reduction Leverage.
Risk reduction leverage=(RE before RE after)/(Cost of the risk reduction

Risk Registers
The risk register starts, of course, with a risk management plan. The project
manager must seek input from team members as well as stakeholders and possibly
even end users.
The risk register or risk log becomes essential as it records identified risks, their
severity, and the actions steps to be taken. It can be a simple document, spreadsheet,
or a database system, but the most effective format is a table. A table presents a
great deal of information in just a few pages.
Managers should view the risk register as a management tool through a review and
updating process that identifies, assesses, and manages risks down to acceptable
levels.
The register provides a framework in which problems that threaten the delivery of
the anticipated benefits are captured. Actions are then instigated to reduce the
probability and the potential impact of specific risks.
Make your risk register visible to project stakeholders so they can see that risks are
being addressed. They may flag risks you haven't identified and give other options
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for risk mitigation

 We will mark the most threatening risks to the project that

will occur during the entire development.
Upcoming risks are also added to the risk register that is
happens to occupied during the development.
At regular intervals the project control life cycle is
described and risk registers are reviewed.

Risk Register Page

Risk Record
Risk id

Risk title

Owner

Date Raised

Status

Risk Description
Recommended Risk mitigation
Probability impact values
IMPACT

Probability

Cost

Duration

Quality

Pre mitigation
Post mitigation
Incident/action history
Date

Incident/action

Actor

Outcome/comment

Thank You.