1. Assessing Risk Impact Factors affecting the consequences Nature Scope
Timing
Risk Exposure
RE = Prob. x Cost

2. Recap

3. Software Engineering II
Lecture 20
Fakhar Lodhi

4. Example Risk Identification
Only 70% of the software components scheduled for reuse will, in fact, be integrated into the application. The remaining functionality will have to be custom developed.
Risk Probability
80% likely

5. Risk impact
60 reusable software components were planned. If only 70% can be used, 18 components would have to be developed from scratch. Since the average component will cost 100,000, the total cost will be 1,800,000.
RE = 0.8 * 1,800,000 = 1,440,000

6. Analyze and refine the risk into more detailed risks
Risk Refinement
Analyze and refine the risk into more detailed risks
Example
Certain reusable components were developed by a 3rd party with no knowledge of internal design standards
Design standards for component interfaces have not been solidified and may not conform to certain existing components

7. Risk Refinement
Certain reusable components have been implemented in a language that is not supported on the target environment

8. Mitigation/Monitoring
Contact 3rd party to determine conformance with design standards
Press for interface standard completion; consider component structure when deciding on interface protocol
Check to determine if language support can be acquired

9. Management/Contingency Plan
RE computed to be 1,440,000. Allocate this amount within project contingency cost.
Develop revised schedule assuming 18 additional components will have to be custom-built
Allocate staff accordingly

10. Risk Mitigation, Monitoring, and Management (RMMM)
Assists the project team in developing strategy for dealing with risk
An effective strategy must consider:
Risk avoidance
Risk monitoring
Risk management and contingency plan
Remember - ‘Avoidance is always the best strategy’

11. Example Risk rj - High turnover
i.e. the rate at which employees are leaving the company is high
Likelihood lj = 0.7 or 70%
Impact xj
projected at level 2 (critical)

12. Mitigation Strategy for Reducing Turnover
Meet with current staff to determine causes for turnover (e.g. poor working conditions, low pay, competitive job market)
Mitigate those causes that are under our control before the project starts
Once the project commences, assume turnover will occur and develop techniques to ensure continuity when people leave

13. Mitigation Strategy for Reducing Turnover
Organize project teams so that information about each development activity is widely dispersed
Define documentation standards and establish mechanisms to be sure that documents are developed in a timely manner (to ensure continuity)
Conduct peer reviews of all work (so that more than one person is up to speed)
Assign a backup staff member for every critical technology

14. Monitoring Risk Factors
General attitude of team members based on project pressures
The degree to which the team is jelled
Interpersonal relationships among team members
Potential problems with compensation and benefits
The availability of jobs within the company and outside it