Risk management is associated with assessing and quantifying business risks, then taking measures to control or reduce them. As software technologies continue to grow in terms of power and complexity we are witnessing the rapid expansion of software into virtually every walk of our business and personal life. Poor software project management can lead to missing deadline, overrun of cost and can also be major cause of ultimate cause of customer dissatisfaction. The following techniques may be considered to assess and address the complete risk management process at your company.
- As a project manager, you can hold regular team meetings or brainstorming sessions, feedback from the stakeholders or use your past experience from similar projects to identify the risk.
- Another interesting area of risk assessment at your company may be high-level support, funding, resources, skills, hidden agendas and planning related issues.
- Another useful tool for analysis of risk at you company can be SWOT (strengths, weaknesses, opportunities, and threats) analysis.
- If you need to learn more about different approaches for risk management, you can consult very useful book A Guide to the Project Management Body of Knowledge (PMBOK Guide) published by the Project Management Institute (PMI). You can look into detailed break down of risk there.
- Once you identified your risk log, you have to quantify and prioritize your risk. You can assign a value like severe, high, medium and low according to their significance. You should also consider financial impact for each factor.
- The next step is to take corrective action to address the risk. You can outsource the risk to a company. If you want to address the risk internally, please, do some research in terms of contingency plans and funding, bringing in team members who have the expertise to take over a key task. If the overall impact of any risk is minimal, you may ignore it totally. You should also document the different risks and different steps taken to address it.
- It is crucial to review your risk periodically to do successful monitoring of risk. You can find out the progress of addressing identified risks and discover the new risks that may crop up in future. Additionally, you can do further investigation whether the project may be in real trouble due to some high risks.
As per Fitzerald, the Risk Managemnt expert, some key early warning signs, includes high number of unresolved issues, persistent disagreements about what should be done, and early slippage in the schedule. Any of these circumstances may indicate a need to reassess your entire risk management and project implementation strategy.
- Recently, Agile development came up as a new software development methodology. Rather than working with the whole software, it promotes development of one complete piece at a time. This strategy can reduce the risk significantly.