Risk Management – Better Preparedness against Adversities


Risk Management

Risk management is concerned with identifying risks and drawing up plans to minimise their effect on a project.

A risk is a probability that some adverse circumstance will occur

  • Project risks affect schedule or resources;
  • Product risks affect the quality or performance of the software being developed;
  • Business risks affect the organisation developing or procuring the software.

Risk is inevitable in a business organization when undertaking projects. However, the project manager needs to ensure that risks are kept to a minimal. Risks can be mainly divided between two types, negative impact risk and positive impact risk.

 

Not all the time would project managers be facing negative impact risks as there are positive impact risks too. Once the risk has been identified, project managers need to come up with a mitigation plan or any other solution to counter attack the risk.

The Risk Management Process:

Risk Management

The Risk Management Process:

  • Risk identification

–Identify project, product and business risks;

  • Risk analysis

–Assess the likelihood and consequences of these risks;

  • Risk planning

–Draw up plans to avoid or minimise the effects of the risk;

  • Risk monitoring

– Monitor the risks throughout the project;

 

Risk identification :

  • Technology risks.
  • People risks.
  • Organisational risks.
  • Requirements risks.
  • Estimation risks.

 

Risk Planning:

  • Consider each risk and develop a strategy to manage that risk.
  • Avoidance strategies

–The probability that the risk will arise is reduced;

  • Minimisation strategies

–The impact of the risk on the project or product will be reduced;

  • Contingency plans

If the risk arises, contingency plans are plans to deal with that risk;

 

Risk Monitoring:

  • Assess each identified risks regularly to decide whether or not it is becoming less or more probable.
  • Also assess whether the effects of the risk have changed.
  • Each key risk should be discussed at management progress meetings.

For more technology related information, please visit our Training & Development Section.

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