Risk guideline


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Pragmatically dealing with agile product (solution-system-software) development risk.

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Risk guideline

  1. 1. Risk Guideline Initiate/ Conceptualize/ Instantiate/ Realize/ Select Commit Actualize DeployA project, like life, is uncertain. We identify risks not for their own sake, but to anticipate andmitigate them, if possible, or to respond to them when our mitigation strategies fall short.Risk drives the iteration plans; iterations are planned around addressing specific risks, attemptingto either bound the risk or reduce it. The risk list is periodically reviewed to evaluate theeffectiveness of risk mitigation strategies, which in turn drives revisions to the project plan andsubsequent iteration plans.The key to managing risk is not to wait until a risk materializes (and becomes a problem or afailure) to decide what to do about it. Just as a change of a few degrees in the path of atranscontinental flight has a large effect on where the plane lands, managing risk early is nearlyalways less costly and painful than cleaning-up after the fact.Risk Management Strategies Risk avoidance. Reorganize the project so that it cannot be affected by that risk. Risk transfer. Reorganize the project so that someone or something else bears the risk (customer, vendor, bank, another element, and so on). A specific strategy of risk avoidance. Risk acceptance. Decide to live with the risk as a contingency. Monitor the risk symptoms and decide on a contingency plan of what to do if a risk emerges.@Copyright 2008–2012 Russell Pannone All rights reserved
  2. 2. If you decide to accept the risk, you still may want to mitigate the risk, that is, take some immediate action to reduce its impact.What is Risk?Risks are future uncertain events with a probability of occurrence and a potential for loss.Risk identification and management are the main concerns in every software project. Analysis ofrisks will result in effective planning and assignments of work and getting the right things donethe right way.Risks are identified, classified and managed.Categories of RisksSchedule RiskSchedules often slip due to following reasons: Wrong time estimation Resources are not tracked properly Failure to identify complex functionalities and time required to develop those functionalities Unexpected project scope expansionBudget Risk Wrong budget estimation Cost overruns Project scope expansionOperational RiskCauses of Operational risks: Failure to address priority conflicts Failure to identify and effectively deal with impact on existing business process o Inadequate training o Insufficient human resources@Copyright 2008–2012 Russell Pannone All rights reserved
  3. 3. Technical RisksCauses of technical risks are: Continuous changing requirements No advanced technology available or the existing technology is in initial stages. Product is complex to implement. Difficult integrationExternal RisksThese risks are outside the control of the project or program. Running out of funding Market development Changing customer product strategy and priority Government rule changes@Copyright 2008–2012 Russell Pannone All rights reserved