Risk management involves identifying and managing risks associated with software projects. It aims to avoid disasters or heavy losses. There are three categories of risk: project risks that affect schedule or resources, product risks that affect quality or performance, and business risks that affect the developing or purchasing organization. The risk management process involves identifying risks, analyzing their probability and impact, planning risk avoidance or minimization, monitoring risks, and documenting outcomes. Process visibility is important and can be achieved through documentation, diagrams, training, and tools that make processes accessible. It helps ensure competency and collaboration.

1. RISK
MANAGEMENT

2. • Risk management is to solve the problem of
identifying & managing the risks associated
with software projects.
• The basic goal of risk management is to avoid
disasters or heavy losses.
• Risk management can be divided into 3
categories :
• Project risks
• Product risks
• Business risks
Overview of risk management

3. Overview of risk management
Project risks
• Risks that affect the project schedule or resources.
Examples:
Staff turnover: An experienced employee leaves the
project before its completion.
Hardware unavailability: Essential hardware is not
developed on time.
Size underestimate: size of the software system is
underestimated.
Requirements Change: A large number of changes to
the requirements are made.

4. Overview of risk management
Product risks
• Affect the quality or the performance of the
software being developed.
Examples:
Specification delays: essential interface
specifications are not available on time.
CASE tools poor performance: case tools
supporting the project do not perform as
expected. (development and maintenance of
software projects with help of various automated
software tools).

5. Overview of risk management
Business risks
• Affect the organizations developing or
purchasing the software.
Examples:
Technology change: The main technology on
which the system is built is replaced by new
technology.
Product competition: A competitor markets a
new product before the software system is
completed.

6. Risk management process
The process of risk management involves the following
important stages:
Risk identification:
• It is the first step in risk assessments which identifies
all the possible project, product and business risks in
a particular project.
• In addition, identifying the risks early provides the
management with a lot of time to handle the risks.
Risk analysis:
• Analyze the probability of the undesirable event
occurring and the loss that will occur if that event
occurs.

7. Continued….
Risk planning:
• By performing risk assessment (Risk
identification and analysis), a properly
prioritized list of the project risks will become
available.
• Therefore plans of avoiding or minimizing the
effects of the risks could be made.

8. Risk monitoring:
• This must be a continuous process. Each
identified risk is regularly assessed.
• Finally the outcome of the risk management
process must be documented.
• It should include the risks faced by the project,
analysis of those risks and plans required to
manage the risks.
Continued….

9. Process Visibility
• Processes should not only be designed and
implemented but should also be visible.
• The documentation of software systems makes
the software process visible.
• A key step is to ensure that the processes are
visible to all employees and managers who will
be able to implement processes effectively.

10. Steps required for process visibility
Documentation:
• It offers the most efficient and simple way to
document any process within an organization.
• This could be a process manual or even a simple
list of tasks that need to be performed.
• Process documentation can then be sent to all
employees and decision makers who are involved
in implementing the processes, and kept on
record, to be updated as changes are required.

11. Continued…
Diagrams
• Diagrams offer a visual representation of the
process steps.
• By adding visual representations within the
process documentation, process steps can also be
simplified and made clearer to all involved.
Sharing
• The most effective way to ensure total visibility
and understanding of processes is done through
training, one-on-one facilitation and through
tools that make it easier for employees to access
the process and understand them fully.

12. Continued…
Process model Process visibility
Waterfall model Good visibility. Each activity produces
specific deliverables or output.
Evolutionary model Poor visibility. Uneconomic to produce
documents during rapid iterations.
Spiral model Good visibility. Each spiral produces some
document with risk assessment.

13. Continued…
Advantages
• Process visibility helps everyone - employees,
customers to see and understand an
organization’s operations from beginning to
end.
• Competency spreads throughout the
organization.
• collaboration increases, and problem solving
becomes easier as a company’s supporting
resources such as training, tools, and policies
become readily available to all.

14. Continued…
Disadvantages
• The time schedule for management
requirements may not correspond with time
required to complete an activity. This will lead
to extra documents to be produced adding to
the cost of the process.
• Sometimes development continues before the
previous phase documents are completed,
affecting review and approval process.

15. • Software engineering is bounded by local,
national and international laws.
• Software engineers should uphold normal
standards of honesty and integrity.
• They should not use their skills and abilities to
behave in a dishonest way.
Professional Responsibility

16. Some of the professional responsibilities are:
1. Confidentiality : Engineers should respect
the confidentiality of their employers or
clients irrespective of whether a
confidentiality agreement has been signed or
not.
2. Competence: They should not misrepresent
their level of competence. They should not
accept work which is outside their
competence.

17. Continued …
Intellectual property rights:
They should be aware of local laws governing
the use of intellectual property such as patents,
copyright, etc. They should ensure that the
intellectual property of employers and clients is
protected.
Computer misuse:
They should not use their technical skills to
misuse other people’s computers.