CS605 Final Term Highlighted Handouts by Masters

with i A risk analysis involves quantifying degree of uncertainty of the risk and loss associate t. In this regards, the PM tries to find answers to the following questions:

What can go wrong?

What is the likelihood of it going wrong?

What will the damage be?

What can we do about it?

Final Term Highlighted Handouts by Masters

Types of Risks

problems budgetary, schedule, personnel, resource, customer, requirement

A useful technique in this regards is the Losing budget or quality, Each project is faced with many types of risks. These include:

– Will impact – Includes

– Impact the t

nd maintenance

– Leading edge technology

– Alignment with the overall business strategy

personnel commitments

Risk Identification

It is the responsibility of the project manager to identify known and predictable risks. These risks fall in the following categories of generic risks and product specific risks. Generic risks are threats to every project whereas Product specific risks are specific to a particular project. The question to be asked in this context is: what special characteristics of this project may threaten your project plan? preparation of a risk item checklist. This list tries to ask and answer questions relevant to each of the following topics for each software project:

Assessing Overall Project Risks

In order to assess the overall project risks, the following questions need to be addressed:

Have top software and customer managers formally committed to support the project?

Are end-users committed to the project and the system/product to be built?

Are requirements fully understood?

Have customers been involved fully in requirement definition?

Do end-users have realistic expectations?

Does the software team have right mix of skills?

Staff size and experience Technology to be built Customer characteristics unpredictable risks cannot be identified. uncovered after careful evaluation whereas problems

Product size How to sell Business risks – Includes design, implementation, interface, verification a imelines, and cost Technical risks schedule and cost Project risks

Implementation may become difficult or impossible

– Marketability

predictable and unpredictable risks. Predictable risks can be Furthermore, there are

Business impact

Process definition Development environment requirements will result in mission failure Are project requirements stable? Does the project team have experience with the technology to be implemented? Is the number of people on the project team adequate to do the job?

Each risk has many components and forces behind them. From this perspective, risks can be categorized into the following categories:

Each risk has its own impact and can be

This is summarized in the following table:

Risk Impact · Performance Support · Cost · Schedule

Catastrophic Consequence of Failure to meet the error Results in increased cost and schedule delays. Expected value in excess of $500K Consequence of Significant NonBudget Unachievable failure to degradation responsive or overrun

result unsupportable likely

Critical

Consequence of Would degrade performanceResults in operational error to a point where mission success is questionable delays and or increased cost with expected value of $100K-$500K Consequence of Some Minor delays Possible Possible failure to reduction in overrun slippage achieve desired technical result performance

Marginal

Consequence of Result in degradation of Expected value <$100K error secondary mission Consequence of Small Responsive Sufficient Realistic failure to

result reduction financial resources

Consequence of Inconvenience error Consequence of No reduction Supportable failure to Minor

Budget under run achievable The degree of uncertainty that the project budget will be maintained for its intended use

easy to correct, enhance, and adapt Resultant software will be

characterized as negligible, marginal, critical, or Product schedule will be maintained Schedule risks Support risks Cost risks Performance risks

Marginal minor and not important

risk—the chance that a large number of people will suffer a given level of harm.

Risk components and drivers

– Degree of uncertainty that the product will meet its requirements and be fit