Risk is the potential for a problem that can cause the loss of something valuable. Unnecessary risk can cost you time and money, especially in the IT industry where most software projects have some elements of risk. In this ebook, we’ll provide you with an overview of risk management in software development, and share the experience of our project managers (PM) who are experts at identifying, assessing and mitigating software risks.
What is software risk management and why is it important in software development?
Software risk is any event or circumstance which may lead to a positive outcome or have a negative effect or the potential for loss within an organization. Risk identification and risk management are critical to the success or failure of a software development project, and most companies today use risk analysis software and risk management solutions to identify, reduce or prevent risks during software development.
The algorithm of software risk management consists of:
- Identification of risks that may arise in relation to a project. This is when you form the register of risks.
- Qualitative analysis and risk prioritizing mean defining the biggest and the most negative risks to prioritize to avoid spending too much time on opportunities and missing real problems that could be critical to the project’s success. One of the best tools to be used for this is the decision tree analysis.
- Quantitative analysis allows you to define the risk probability in percentage points and the amount of effort in hours necessary to diffuse the impact of the risk.
- Planning the risk response can include either a mitigation plan (how we can decrease the risk probability or what we can do with it in advance) or a contingency plan (what we will do if the risk occurs).
- Monitoring and control include checking the identified risks and adopting plans to refine them and/or find better methods for minimizing negative effects and boosting project productivity.
Download the ebook to learn more about the tools for risk identification and assessment as well as examining the route causes and their impact evaluation, and strategies to address and mitigate risks: