2. Characteristics of Risk
1 Loss
if becomes a reality, unwanted consequences or losses occur
2 Uncertain
may or may not happen
3. Categories of Risk- I
Project Risks Technical Risks
Business Risks
Market Risks Strategic Risks Sales Risks Budget Risks
4. Risk Identification
Risk Item Checklist
☸Product size
☸Business impact
☸Stakeholder characteristics
☸Process Definition
☸Development Environment
☸Technology to be built
☸Staff size and experience
5. Risk projection
Risk Estimation, attempts to rate each risk based on:
Probability of risk being real
Consequence of problem associated, should it occur
Steps:
• Establish scale of likelihood of risk
• Delineate consequences
• Estimate impact on project and product
• Access accuracy of projection
6. Risk Table
Done based on Risk Item Checklist
After filling table sort by probability and impact
High Probability High Risk is topmost Low Probability Low Risk is at the
bottom
Decide the cutoff line and handle those risks above it
7. RMMM
Risk Mitigation
Proactive approach that avoids risks
Steps to mitigate “High Staff Turnover”
Backup staff assigned for critical technology
Conduct peer reviews
Define standards and mechanisms to ensure timely
development
Develop techniques to ensure continuity when people
leave
Meet staff to determine cause of turnover
8. RMMM
Risk Monitoring
☸ Tracks the project
☸ Role of Project Manager
☸ Monitors factors indicating risk and effectiveness of
mitigation
☸ Access general attitude of team members
☸ Degree of jelling in team
☸ Interpersonal relationships
☸ Compensation and benefits
☸ Job availabilities
☸ Impart information to newcomers joining
☸ Check for continuity of project when a critical member
leaves
9. RMMM
Risk Management
☸ Contingency plan assuming mitigation has failed, risk becomes reality
☸ Readjust project schedules and resources
☸ Enable new comers to get into project and speed up development
☸ Stop all work and start “knowledge transfer mode”
☸ Make use of things like backup and documented data of development
done in the mitigation plan
