Q1 Flashcards
is the potential of gaining or losing something of value
Risk
Types of Risk (3)
- Business risk
- Financial risk
- Organizational risk
Taken by business enterprises in order to maximize shareholder value and profits.
Business risk
The risk that involves financial loss of firms
Financial risk
Arises out of operational failures such as mismanagement or technical failures
Organizational risk
Five Types of Risk in Software Project Management
- New, unproven technologies
- User and functional requirements
- Application and system architecture
- Performance
- Organizational
The majority of software projects entail the use of new technologies. Ever-changing tools, techniques, protocols, standards, and development systems increase the probability that technology risks will arise in virtually any substantial software engineering effort.
New, unproven technologies
Software requirements capture all user needs with respect to the software system features, functions, and quality of service. Too often, the process of requirements definition is lengthy, tedious, and complex.
User and functional requirements
Taking the wrong direction with a platform, component, or architecture can have disastrous consequences. As with the technological risks, it is vital that the team includes experts who understand the architecture and have the capability to make sound design choices.
Application and system architecture
Consideration must be given to benchmarks and threshold testing throughout the project to ensure that the work products are moving in the right direction.
Performance
Project management must plan for efficient execution of the project, and find a balance between the needs of the development team and the expectations of the customers.
Organizational
Nature of Risk (2)
- Internal Risk
- External Risk
These risks happen within the organization and arise during normal operations.
Internal Risk
These risks come from outside the organization/project and is outside of the team’s control.
External Risk
Risk Categories (13)
- Operational Risk
- Schedule Risk
- Budget Risk
- Business Risk
- Technical Environment Risk
- Information Security Risk
- Programmatic Risk
- Infrastructure Risk
- Quality and Process Risk
- Resource Risk
- Supplier Risk
- Technology Risk
- Technical and Architectural Risk
Risks of loss due to improper process implementation, failed system or some external events risks.
Operational Risk
Project schedule get slip when project tasks and schedule release risks are not addressed properly.
Schedule Risk
This risk may lead to either a delay in the delivery of the project or sometimes even an incomplete closure of the project.
Budget Risk
Non-availability of contracts or purchase order at the start of the project or delay in receiving proper inputs from the customer or business analyst may lead to business risks.
Business Risk
These are the risks related to the environment under which both the client and the customer work.
Technical Environment Risk
The risks related to the security of information like confidentiality or integrity of customer’s personal / business data.
Information Security Risk
The external risks beyond the operational limits. These are outside the control of the program.
Programmatic Risk
Improper planning of infrastructure / resources may lead to risks related to slow network connectivity or complete failure of connectivity at both the client and the customer sites.
Infrastructure Risk
This risk occured due to
- Incorrect application of process tailoring and deviation guidelines
- New employees allocated to the project not trained in the quality processes and procedures adopted by the organization
Quality and Process Risk
This risk depends on factors like Schedule, Staff, Budget and Facilities. Improper management of any of these factors leads to resource risk.
Resource Risk
This type of risk may occur when some third party supplier is involved in the development of the project. This risk occurs due to the uncertain or inadequate capability of supplier.
Supplier Risk
It is related to the complete change in technology or introduction of a new technology.
Technology Risk
These types of risks generally generally leads to failure of functionality and performance. It addresses the hardware and software tools & supporting equipments used in the project. The risk for this category may be due to — Capacity, Suitability, Usability, Familiarity, Reliability, System Support and Deliverability.
Technical and Architectural Risk
Risk Management Process (4)
- Identification
- Analysis
- Planning
- Monitoring
Identify Risk (3)
- Uncover
- Recognize
- Describe
Review the Past Project History
Uncover
Assess the practices of the present project
Recognize
Come up with creative ideas for future projects
Describe
Determine how likely each risks
are to happen
Analyze the Risk
Possible consequence of risk in case it happens
Impact of Risk
Categorize the Risk (2)
- Qualitative Risk Analysis
- Quantitative Risk Analysis
Qualitative Risk Analysis (3)
- High
- Low
- Medium
Risk level is defined in % which does not give a very clear picture
Quantitative Risk Analysis
Defining preventive measures
Planning
depicts the different activities involved in the management of risk associated with software development.
Risk Management Paradigm
RMP Activities (6)
- Identify
- Analyze
- Plan
- Track
- Control
- Communication
Before risks can be managed, they must be identified. Identification surfaces risks before they become problems.
Identify
is the conversion of risk data into risk decision-making information.
Analysis
turns risk information into decisions and actions.
Planning
consists of monitoring the status of risks and the actions taken to ameliorate them.
Tracking
corrects deviations from planned risk actions.
Risk control
lies at the center of the model to emphasize both its pervasiveness and its criticality.
Risk communication
RMMM
Risk Mitigation Monitoring and Management
covers efforts taken to reduce either the probability or consequences of a threat.
Risk Mitigation
is the process of identifying, analyzing, and planning for newly discovered risks and managing identified risks.
Risk Monitoring and Control
is the identification, assessment, and prioritization of risks.
Risk Management
documents all work performed as part of risk analysis and used by the project manager as part of the overall project plan
RMMM plan
