Risk Management Planning for Problems

Characteristics of Risk Risk has two principle characteristics Uncertainty – It may or may not happen Loss – If it happens, losses will occur Risk varies along three dimensions Nature – What goes wrong Scope – What does it affect Timing – When does it happen and for how long

Risk Management: Purpose and Process We manage risks to proactively prevent “bad things” from happening to our project How to Do It Identify Risks Estimate Damage Likelihood Impact Prioritize Problems Develop Mitigation Plan Monitor and Act

Types of Risk (Entire Project) Project – Threaten project plan by change in budget, schedule, personnel, etc. Technical – Problem harder than estimated Business – Wrong product, presentation, or loss of management support

Types of Risk (in Development) Size of Task – Problem in scoping Business Impact – Problems with meeting market constraints Customer Disconnect – Loss, lack, or inability to communicate with customer Process Problems – Lack or disregard in following development process Dev Environment – Problems with availability, quality, or understanding of development tools Technology – Risk of newness, difficulty, or complexity Experience – missing skills, insufficient self-discipline, lack of time and attention

Additional Points of Emphasis Difference between known and predictable risks (pg 746 7/e, pgs /e) Difference between generic and product- specific risks (pg 747 7/e, pg 697 6/e) Important questions for determining project risk (pgs /e, pgs /e) Prescriptive advice for developing a risk table (section and scenario pg 754 7/e, section and scenario pg 704 6/e)