Risk Management Process

Posted By on April 29, 2016

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Risk Management
The RMMM Plan

Risk Management comprises of following processes:

  1. Software Risk Identification
  2. Software Risk Analysis
  3. Software Risk Planning
  4. Software Risk Monitoring

These Processes are defined below.

Software Risk Identification

In order to identify the risks that your project may be subjected to, it is important to first study the problems faced by previous projects. Study the project plan properly and check for all the possible areas that are vulnerable to some or the other type of risks. The best ways of analyzing a project plan is by converting it to a flowchart and examine all essentialareas. It is important to conduct few brainstorming sessions to identify the known unknowns that can affect the project. Any decision taken related to technical, operational, political, legal, social, internal or external factors should be evaluated properly.

Software Risk Identification

In this phase of Risk management you have to define processes that are important for risk identification. All the details of the risk such as unique Id, date on which it was identified, description and so on should be clearly mentioned.

Software Risk Analysis

Software Risk analysisis a very important aspect of risk management. In this phase the risk is identified and then categorized. After the categorization of risk, the level, likelihood (percentage) and impact of the risk is analyzed. Likelihood is defined in percentage after examining what are the chances of risk to occur due to various technical conditions. These technical conditions can be:

  1. Complexity of the technology
  2. Technical knowledge possessed by the testing team
  3. Conflicts within the team
  4. Teams being distributed over a large geographical area
  5. Usage of poor quality testing tools

With impact we mean the consequence of a risk in case it happens. It is important to know about the impact because it is necessary to know how a business can get affected:

  1. What will be the loss to the customer
  2. How would the business suffer
  3. Loss of reputation or harm to society
  4. Monetary losses
  5. Legal actions against the company
  6. Cancellation of business license

Level of risk is identified with the help of:

Qualitative Risk Analysis: Here you define risk as:

  • High
  • Low
  • Medium

Quantitative Risk Analysis: can be used for software risk analysis but is considered inappropriate because risk level is defined in % which does not give a very clear picture.

Software Risk Planning

Software risk planning is all about:

  1. Defining preventive measure that would lower down the likelihood or probability of various risks.
  2. Define measures that would reduce the impact in case a risk happens.
  3. Constant monitoring of processes to identify risks as early as possible.

Software Risk Planning

Software Risk Monitoring

Software risk monitoring is integrated into project activities and regular checks are conducted on top risks. Software risk monitoring comprises of:

  • Tracking of risk plans for any major changes in actual plan, attribute, etc.
  • Preparation of status reports for project management.
  • Review risks and risks whose impact or likelihood has reached the lowest possible level should be closed.
  • Regularly search for new risks
Risk Management
The RMMM Plan

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Posted by Akash Kurup

Founder and C.E.O, World4Engineers Educationist and Entrepreneur by passion. Orator and blogger by hobby

Website: http://world4engineers.com