Software risk management - Essay Example

Risk management is a part of the project development process, which ensures that the proposed project is free from risks. Introduction Software Risk Management is a process which is composed of activities like risk assessment, analysis, risk management plan and implementation. Risk management is referred to as a plan that involves a series of steps which assist an organization to mitigate with the possible risks. Risk management is generally carried out by a team of people who analyze every project and process in an organization.

This ensures that an implemented project is free from risks. Risk management is not limited to projects alone; instead it can be used to check the level of risk in the projects that an organization develops. This helps the organization to select and develop projects that are less prone to risk. Risk Management Process Risk management process constitutes of several components that make up the entire strategy. Risk management process involves clearly defined steps that allow the organization to identify and analyze each process’s objectives.

(Padayachee, 2002). When the objective is analyzed, the probability of risk is minimized. Once the risks are identified, they are put into a log list which specifies each process based on their level of risk. This ensures that the process with higher level of risk is resolved in the beginning. The safety of the project is also guaranteed and the possibility of effective implementation is also guaranteed as the processes or components that pose a risk to the project are resolved well in advance.

(McCanus, 2004). In a software environment, the possibility of risk is high and the chances of disaster are also high. A software project which involves several phases like requirement identification, analysis, design, development, testing and implementation, the possibility of risk is more. In each level, a new component might be used and this might turn out to be the greatest risk for the project. (Galorath, 2006). To avoid such problems, it is better to implement risk management module so that the developer can be sure of implementing a project that does not create any problems in the future.

A software project is prone to risks like technical risks, financial risks, resource risks and management risks. In each stage of project development, a risk parameter is introduced to analyze the project. This will enable the organization to have a control over the project’s development. (Boehm, 1989). This is advantageous as the risks can be found immediately and resolved. Among all the other components of risk management process, risk identification, risk assessment and risk control. All these modules provide a detailed look at the risk management process.

Risk Assessment Risk assessment is the first process in the risk management process. This in turn involves risk identification, analysis and risk evaluation. Risk identification is carried out by identifying the sources which pose risk to the project. (Sommerville, 2009). The identified sources must be listed in order to make sure that they do not occur again. Then the risk of each source is analyzed and they are ordered based on the risk priority. Risk analysis is done based on certain assumptions or using methods like path analysis method.

Assumption analysis is carried out by deriving assumptions and checking whether the process falls in the