Risk Management is an important part of project planning activities. It involves identifying and estimating the probability of risks with their order of impact on the project.
Risk Management Steps:
Some steps need to be followed to reduce risk. These steps are as follows:
1. Risk Identification:
Risk identification involves brainstorming activities. It also involves the preparation of a risk list. Brainstorming is a group discussion technique where all the stakeholders meet together. This technique produces new ideas and promotes creative thinking.
Preparation of a risk list involves the identification of risks that are occurring continuously in previous software projects.
2. Risk Analysis and Prioritization:
It is a process that consists of the following steps:
- Identifying the problems causing risk in projects
- Identifying the probability of occurrence of the problem
- Identifying the impact of the problem
- Assigning values to step 2 and step 3 in the range of 1 to 10
- Calculate the risk exposure factor which is the product of values of Step 2 and Step 3
- Prepare a table consisting of all the values and order risk based on risk exposure factor
For example,
TABLE (Required)
| Risk No | Problem | Probability of occurrence of problem | Impact of problem | Risk exposure | Priority |
|---|---|---|---|---|---|
| R1 | Issue of incorrect password | 2 | 2 | 4 | 10 |
| R2 | Testing reveals a lot of defects | 1 | 9 | 9 | 7 |
| R3 | The design is not robust | 2 | 7 | 14 | 5 |
3. Risk Avoidance and Mitigation:
The purpose of this technique is to eliminate the occurrence of risks. so the method to avoid risks is to reduce the scope of projects by removing non-essential requirements.
4. Risk Monitoring:
In this technique, the risk is monitored continuously by reevaluating the risks, the impact of risk, and the probability of occurrence of the risk.
This ensures that:
- Risk has been reduced
- New risks are discovered
- The impact and magnitude of risk are measured