1. Software Risk Management
By:
Gunjan Patel
Medical Software

2. “If You Don’t Actively Attack the Risks,

3. ………without risks there is no reward
The Risks Will Actively Attack You.”
-Tom Gilb
………without risks there is no reward

4. Definitions and Principles Risk Assessment and Control
Outline
Definitions and Principles
Risk Assessment and Control
Methodological Dimension
Recommended Implementation Approach
References

5. Define
Risk
Any anticipated unfavorable event or circumstances that occur while the project is underway.
If the risk become true
It can hamper the successful and timely completion of a project.
Therefore, it is necessary to anticipate and identify different risks.
Risk management
Reducing the impact of all kinds of risks that might affect a project.

6. Importance of Software Risk
Addresses Complex Software Systems
Focuses Projects on Critical Risk Items
Provides Techniques for Handling Risk Items
Reduces Software Costs by Reducing Rework
Usually 40-50% of software costs
Making informed decisions involves the evaluation of risk improvement
Costs, benefits, and risks
The evaluation of the impact of current decisions on future options

7. Risks within a system Context
This process of risk management embodies

8. Process of Risk Management
This process of risk management embodies the identification, analysis, planning, tracking, controlling, and communication of risk.
A continuous set of activities to identify,
confront, and resolve technical risk

9. Risk Assessment and Control

10. Risk assessment
The objectives of risk assessment is to rank the risks in terms of their damage causing potential.
For risk assessment, each risk should first be rated in two ways:
The likelihood of a risk coming true (r)
The severity of damage caused due to the risk (s)
Based on these factors
The priority of each risk can be computed as
p = r ٭ s

11. Risk identification
The project manager needs to anticipate the risks in the project as early as possible so that the impact of the risk can be minimized by making effective risk management plans.
In order to be able to systematically identify the important risks, it is necessary to categorize risks into different classes.
Main categories of risks
Project risks
Technical risks
Business risks

12. Main categories of risks
Project risks
Concern various forms of
Budgetary, Schedule, Personnel, Resource and Customer-Related Problems.
e.g. schedule slippage
Software is intangible, it is very difficult to monitor and control software projects.
Technical risks
Concern
Potential design, implementation, interfacing, testing, and maintenance problems.
E.g. incomplete specification, changing specification, etc.
Business risks
Includes
An excellent product that no one wants, losing budgetary, etc.

13. Risk Containment Techniques for Handling Risks
After all the identified risks are assessed, plans must be made to control the most damaging and the most likely risks.
Strategies used for risk containment:
Avoid the risk
Discuss with customer to reduce the scope of the work
Giving incentives to engineers to avoid the risk of manpower turnover, etc.
Transfer the risk
Getting the risky components developed by a third party
Buying insurance cover, etc.
Risk reduction
Planning ways to control the damage due to a risk
If there is risk that some key personnel might leave, new recruitment may be planned.
Techniques for Handling Risks

14. To choose between the different strategies of handling a risk, the project manager must consider the cost of handling the risk and the corresponding reduction in risk.
Risk exposure before reduction – risk exposure after reduction
Risk leverage =
Risk reduction of cost

15. Methodological Dimension
Design to Improve overall software development process to integrate knowledge into the software acquisition process that enable manageress to make timely decision.
Samples of questions for methodological
I know that improving the process will improve my software. How do I choose the improvement method that will have the most effect for my current state? How do I secure against major disasters? What cost will I face?

16. Software Risk management Methodology
Framework for Software Risk management
1. Software Risk Evaluation (SRE)
2. Continuous Risk Management (CRM)
3. Team Risk Management (TRM)
Developed software risk methodologies
1. Risk prevention
2. Risk mitigation and correction
3. Ensuring safe system failure

17. The functions are managed is composed
SRM methodological addresses the two functions of software acquisition and development.
The functions are managed is composed
Software Acquisition-Capability Maturity Model
Determine current process maturity identify few critical issues critical to software quality & process improvement
Framework used Quality principles have been design by Quality management Team
Developed the direction Watts Humphrey at IBM
Software - Capability Maturity Model
The key process areas define requirements that must be satisfied in order to accomplish that level of development

18. Methodological Framework for SRM

19. Seven risk management principles
Shared product vision
• Sharing product vision based upon common purpose, shared ownership, and collective commitment
• Focusing on results
Teamwork
• Working Cooperatively To Achieve A Common Goal
• Pooling Talent, Skills, And Knowledge
Forward-looking view
• Thinking Toward Tomorrow, Identifying Uncertainties, Anticipating Potential Outcomes
• Managing Project Resources And Activities While Anticipating Uncertainties

20. Integrated management
Global perspective
Viewing software development within the context of the larger system (3D) Definition, Design, and Development
Open communication
Encouraging the free flow of information between all levels
Bringing unique knowledge to identifying and managing risk
Integrated management
Making risk management an integral part of project management
Adapting risk management methods and tools to a project’s infrastructure and culture
Continuous process
Maintaining constant vigilance
Identifying and managing risks routinely throughout all phases of the project’s life cycle

21. Software Risk Management Methodologies
Basic Constructs to Risk Management
1. Risk Management Paradigm-Boehmís

22. 2.Risk Taxonomy
Follow life cycle of software develop and provides framework for organizing data and info
30%
33%
37%

23. Taxonomy of Software Risks: Overview

24. 3. Risk Clinic
Workshop that takes the CRM and TRM and adapts in integrates it with a client’s communication channels, infrastructure, existing practices, project management, risk management (if any), and technical problem management

25. Software Risk Evaluation (SRE)
Software Risk Evaluation (SRE) Practice model

26. Team Risk Management (TRM)
Initiate:
Recognize the needs
Commit to create the team culture
Team:
Based on risks, priorities, metrics & action plans
Team Activity

27. Continuous Risk Management
CORE
Defining
Sustaining

28. CRM is a principle-based practice for managing project risks and opportunities throughout the lifetime of the project.
When followed, these principles provide an effective approach to managing risk regardless of the specific methods and tools used.
2 are composed of three groups: core, sustaining, and defining.

29. Software Acquisition-Capability Maturity Model (SA-CMMSM)

30. References:
Crosby, P.B. Quality Is Free. New York: McGraw-Hill, 1979.

31. Queries… ???

32. Thank You……..
Kind Attention !!!