Risk Management in Information System Development - Research Paper Example

?Risk Management in Information System Development Risk Management in Information System Development Risk management is the analysis and identification of risk factor in the project life cycle that are likely to hinder the success of the project. Risks occurring during the system development life cycle are immanent and uncertain (Durkovic & Rakovic, 2009). Projects involve interconnected activities and team members and involve specified time frameworks and goals. Risk is defined as an event that has a certain probability of occurrence, and whose occurrence is likely to cause negative or harmful influence on the project (Durkovic & Rakovic, 2009) The process of developing a new information system requires a careful and in-depth risk analysis and assessment, and hence Briargrove must conduct a risk assessment and analysis before the inception of the project (Durkovic & Rakovic, 2009). The process of project risk analysis is a subjective assessment that is based on the probability of failure to realize the set project objectives within the given time framework and resources allocated (Durkovic & Rakovic, 2009). The risk can occur during the inception, development, and finishing or implementation stage of the project. Briargrove must therefore consider performing an in-depth risk analysis in order to unearth the possible challenges that may hinder the success of the information system development, for the placement of necessary measures to ensure that the project is a success (Durkovic & Rakovic, 2009). The information development project involves three types of risks, that is, known risks, known risks with unknown consequences, and known risks. Known risks are well known to the project development team members and have a high probability of occurrence. Known risks that have unknown consequences are also well known to the project development team though the influence of their occurrence on the project are unknown (Durkovic & Rakovic, 2009). On the other hand, unknown risks cannot be identified and their consequences are unknown (Durkovic & Rakovic, 2009). The Briargrove information development project objectives must be clearly drawn out and known to each of the project development team members. Unclear definition of project goals, as from the start of the project, is likely to hinder the success of the project in the long run (Cox, 2009). There is a possible risk in poor definition of the project size, which is likely to take the project in the wrong direction and interfere with the time limit. The project plan must be clearly defined for clarity and scheduling within the specified time limit. Risks can be either internal or external, with internal risks being dependent on the team members, project nature, and available resources, whereas external risks entail legal or political influence of the project (Cox, 2009). Briargrove development team must be well aware of the current economic trends in budgeting for the project to ensure that the available resources are well allocated and evenly distributed throughout the project life cycle (Cox, 2009). Poor budgeting and resource allocation is fatal to the project in the case where the resources diminish before the project is completed, and there is lack of alternative source of money and other resources (Cox, 2009). The development tools to be used in the system development must be well-known to each of the development team members, and hence the selection of the team members must be a representation of diverse experience levels in the information development life cycle, which reduces the chances of project failure (Durkovic & Rakovic, 2009). Briargrove development team members must choose and agree on a suitable size and the complexity of the project for proper uninterrupted development cycle, which eliminates the possibility of time limit expiry that may require an addition of more time and resources (Durkovic & Rakovic, 2009). Briargrove must also identify probable hazards, potentially harmful phenomena or acts, and their consequences on the system development cycle (Durkovic & Rakovic, 2009). The Briargrove development team must be well conscious of the current technology trends, and put proper measures to counter growing technology, such as probable future upgrading of the project in line with changing technology trends (Durkovic & Rakovic, 2009). In any information system development lifecycle, the reliability of the project must be clearly identified, that is, the ability of the system to fulfill its design functions under the designated environmental or operation conditions for a specified period of time (Cox, 2009). The failure of the system is consequential and must hence be clearly identified and proper measures be placed (Cox, 2009). Failure of a system might lead to data loss, which requires a backup system to be timely designed and placed to eliminate the possibility of permanent data loss. System failure may also cause economic damage to Briargrove as a business and lead to huge losses, or even a collapse of the business (Cox, 2009). Briargrove development team must quantify event consequences using absolute measures for the diverse types of consequences, to facilitate risk analysis (Cox, 2009). Project risk can be generally identified and defined as the product of likelihood or probability and the impact severity of occurrence of the event (Cox, 2009). In the process of risk analysis, Briargrove development team may use the risk-based technologies (RBT) for the assessment and management of possible risks of a component of the system or the system itself (Durkovic & Rakovic, 2009). This entails the use of failure prevention and consequence mitigation. The following risk-based management technology may be used in the risk analysis and management; Risk methods are divided into risk management and risk communication (Durkovic & Rakovic, 2009). The risk management is further divided into categories, that is, risk assessment, evaluation and analysis, hazard identification and risk estimation. On the other hand risk management entails risk control, option analysis, risk acceptance, decision making and monitoring the risks and options (Durkovic & Rakovic, 2009). Risk communication entails media and the public, in addition to the development fraternity or experts (Durkovic & Rakovic, 2009). The Briargrove development team must identify with the risks and other event probability assessment and come up with risk control methods through failure prevention and consequence mitigation (Pinto & Garvey, 2012). Briargrove development team must define the safety as per the risk, that is, the decision of risk acceptability for the system (Pinto & Garvey, 2012). Proper sets of management methods and techniques must be put in place to reduce the possibility of occurrence of risks and their consequences, thereby increasing the possibility of achieving the objectives of the project, which is the development of a fully functional information system (Pinto & Garvey, 2012). Risk reduction in the information system development lifecycle is eliminated through proper project planning, definition, initiation, implementation of the project, and the delivery of the final information system. The system is subject to prior implementation and testing for rectification of errors that will deliver the success of the project. According to Durkovic & Rakovic (2009), the matrix of risk analysis may be conducted and tabulated as; Phase of the Project Lifecycle Possible Risk Factors Entire lifecycle Incomplete information Insufficient time allocation for project phases Incomplete phase transition Planning Lack of ample information and plan Miscalculated cost-benefit analysis Definition Unwritten plan Incompletion of the plan Misallocation of duties in the development team Initiation Lack of participation in the plan phase by the development team members Un-assessment and un-verification of the plan by team members Lack of conflict resolution and decision making procedures Carrying out Changes in the client needs Misreporting on the project advancement Quitting of team members Change of market conditions Changes in technology Changes in the management without consent Finalizing Lack of formal acknowledgement by the project manager Assignment of a new project to the team members prior to finalizing with the current project Derived from Durkovic & Rakovic (2009) References Cox, A. (2009), Risk analysis of complex and uncertain systems. New York: Springer. Durkovic, O. & Rakovic, L. (2009), Risks in Information Systems Development Projects, Management Information Systems, Vol. 4 (1), 13-19. Pinto, A., & Garvey, R. (2012), Advanced risk analysis in engineering enterprise systems. Boca Raton: CRC Press. Read More