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Risk Management

Risk Management. Planning for Problems. Characteristics of Risk. Risk has two principle characteristics Uncertainty – It may or may not happen Loss – If it happens, losses will occur Risk varies along three dimensions Nature – What goes wrong Scope – What does it affect

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Risk Management

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Presentation Transcript

  1. Risk Management Planning for Problems

  2. Characteristics of Risk • Risk has two principle characteristics • Uncertainty – It may or may not happen • Loss – If it happens, losses will occur • Risk varies along three dimensions • Nature – What goes wrong • Scope – What does it affect • Timing – When does it happen and for how long

  3. Risk Management: Purpose and Process • We manage risks to proactively prevent “bad things” from happening to our project • How to Do It • Identify Risks • Estimate Damage • Likelihood • Impact • Prioritize Problems • Develop Mitigation Plan • Monitor and Act

  4. Types of Risk (Entire Project) • Project – Threaten project plan by change in budget, schedule, personnel, etc. • Technical – Problem harder than estimated • Business – Wrong product, presentation, or loss of management support

  5. Types of Risk (in Development) • Size of Task – Problem in scoping • Business Impact – Problems with meeting market constraints • Customer Disconnect – Loss, lack, or inability to communicate with customer • Process Problems – Lack or disregard in following development process • Dev Environment – Problems with availability, quality, or understanding of development tools • Technology – Risk of newness, difficulty, or complexity • Experience – missing skills, insufficient self-discipline, lack of time and attention

  6. Additional Points of Emphasis • Difference between known and predictable risks (pg 746 7/e, pgs 696-697 6/e) • Difference between generic and product-specific risks (pg 747 7/e, pg 697 6/e) • Important questions for determining project risk (pgs 748-749 7/e, pgs 698-699 6/e) • Prescriptive advice for developing a risk table (section 28.4.1 and scenario pg 754 7/e, section 25.4.1 and scenario pg 704 6/e)

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