1. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 1 Risk management

2. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 2 Risk management l Risk management is concerned with identifying risks and drawing up plans to minimise their effect on a project. l 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.

3. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 3 Software risks

4. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 4 The risk management process l Risk identification Identify project, product and business risks; l Risk analysis Assess the likelihood and consequences of these risks; l Risk planning Draw up plans to avoid or minimise the effects of the risk; l Risk monitoring Monitor the risks throughout the project;

5. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 5 Risk identification l Technology risks. l People risks. l Organisational risks. l Requirements risks. l Estimation risks.

6. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 6 Risks and risk types

7. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 7 Risk analysis l Assess probability and seriousness of each risk. l Probability may be very low, low, moderate, high or very high. l Risk effects might be catastrophic, serious, tolerable or insignificant.

8. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 8 Risk analysis (i)

9. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 9 Risk analysis (ii)

10. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 10 Risk planning l Consider each risk and develop a strategy to manage that risk. l Avoidance strategies The probability that the risk will arise is reduced; l Minimisation strategies The impact of the risk on the project or product will be reduced; l Contingency plans If the risk arises, contingency plans are plans to deal with that risk;

11. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 11 Risk management strategies (i)

12. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 12 Risk management strategies (ii)

13. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 13 Risk monitoring l Assess each identified risks regularly to decide whether or not it is becoming less or more probable. l Also assess whether the effects of the risk have changed. l Each key risk should be discussed at management progress meetings.

14. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 14 Risk indicators

15. ©Ian Sommerville 2006Software Engineering, 8th edition. Chapter 5 Slide 15 Key points l Good project management is essential for project success. l The intangible nature of software causes problems for management. l Managers have diverse roles but their most significant activities are planning, estimating and scheduling. l Planning and estimating are iterative processes which continue throughout the course of a project.