Risk Management:
A risk is a probable problem- it might happen or it might not. There are main two characteristics of risk
Uncertainty- the risk may or may not happen that means there are no 100% risks.
loss – If the risk occurs in reality , undesirable result or losses will occur.
Risk management is a sequence of steps that help a software team to understand , analyze and manage uncertainty. Risk management consists of
- Risk Identification
- Risk analysis
- Risk Planning
- Risk Monitoring A computer code project may be laid low with an outsized sort of risk. so as to be ready to consistently establish the necessary risks which could have an effect on a computer code project, it’s necessary to reason risks into completely different categories. The project manager will then examine the risks from every category square measure relevant to the project.
There are mainly 3 classes of risks that may have an effect on a computer code project:
- Project Risks:
Project risks concern various sorts of monetary funds, schedules, personnel, resource, and customer-related issues. a vital project risk is schedule slippage. Since computer code is intangible, it’s terribly tough to observe and manage a computer code project. it’s terribly tough to manage one thing that can not be seen. For any producing project, like producing cars, the project manager will see the merchandise taking form.For example, see that the engine is fitted, at the moment the area of the door unit fitted, the automotive is obtaining painted, etc. so he will simply assess the progress of the work and manage it. The physical property of the merchandise being developed is a vital reason why several computer codes come to suffer from the danger of schedule slippage.
- Technical Risks:
Technical risks concern potential style, implementation, interfacing, testing, and maintenance issues. Technical risks conjointly embody ambiguous specifications, incomplete specification, dynamic specification, technical uncertainty, and technical degeneration. Most technical risks occur thanks to the event team’s lean information concerning the project. - Business Risks:
This type of risk embodies the risks of building a superb product that nobody needs, losing monetary funds or personal commitments, etc.
Classification of Risk in a project:
Example: Let us consider a satellite based mobile communication project. The project manager can identify several risks in this project. Let us classify them appropriately.
- What if the project cost escalates and overshoots what was estimated? – Project Risk
- What if the mobile phones that are developed become too bulky in size to conveniently carry? Business Risk
- What if call hand-off between satellites becomes too difficult to implement? Technical Risk
