Risk Analysis

1
Risk Analysis Management
2
Types of Strategies

• Reactive
• handle it when it happens
• proactive
• avoid it

3
Characteristics of Risk

• Uncertainty
• probability that risk will occur
• loss
• impact of risk if it occurs

4
Categories of Risk

• Project risks
• impact entire project plan
• technical risks
• impact quality
• business risks
• demand for system
• no longer needed by company

5
Categories of Risk cont

• lack of knowledge by sales
• losing senior management support
• losing budget support
• unpredictable risks

6
Risk Identification

• Product-specific generic
• lists of potential generic risks
• categories
• product size
• business impact
• customer characteristics
• process definition
• development environment
• technology to be built
• staff size experience

7
Assessing Project Risk

• Have critical managers committed to support
  project?
• End users enthusiastic about product?
• Requirements fully understood
• have customers been involved with requirements?
• Are expectations realistic?

8
Assessing Project Risk cont

• Limit scope creep?
• Appropriate software engineering skills?
• Stable requirements?
• Experience of project team with technology?
• Size of project team
• agreement by all parties on requirements
  importance of project

9
Risk Estimation

• Develop risk table
• list all risks
• categorize each risk
• estimate probabilities
• analyze impact
• sort risks - determine ones that need to be
  managed

10
Risk Estimation cont

• Assessing risk impact
• nature of risk
• problems if risk occurs
• scope
• severity distribution
• timing
• when how long impact

11
Risk Refinement

• As get more data - can refine risk into group of
  smaller risks
• risk avoidance
• risk mitigation
• anticipate problems monitor symptoms
• risk management
• have contingency plans