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:
There are some steps that need to be followed in order 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 risk list involves 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 problem
- Identifying the impact of 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 on the basis of 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 | Design is not robust | 2 | 7 | 14 | 5 |
3. Risk Avoidance and Mitigation:
The purpose of this technique is to altogether 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
- Impact and magnitude of risk are measured
