by
Prasad Aradyula
What is a Risk?
 Particular aspect of any task when ignored increases
the livelyhood of project failure.
 Risk is the probability that a hazard will turn into a
disaster.
 The result of a risk may be a gain or a loss
 Risk= (probability of accident) *(loses per accident)
Types of risks
 May be low budget
 Might be required resources
 Change of working environment
 equipment
Risk Management
 Risk Management is a process of identifying the risks,
analysing them and developing strategies to manage
and mitigate them with managerial resources.
Main Objective
Risks can never be entirely removed.
 Reduce different risks related to specific task.
 Risk may refer to any type of threat like threats caused
byhumans,environment and other organisations.
Steps in Risk Management
 Risk Identification
 Risk Assessment
 Risk Analysis
 Risk Evaluation
 Risk Strategies
Types in Risk Identification
 Objective based Identification
 Scenario based Identification
 Classification based Identification
 Common Risk checking method
Risk Assessment
Process to estimate the risk associated and also
determining the potential threat to organisation
with that particular task
Risk Analysis
 Process of examininig the identified risk factors for
probability of occurance ,potential loss and potentiall
risk handling strategies.
 Creaton of risk register that includes risk
identification and quantify of risk and its potential
impact on the product
Risk Evaluation
 It is the tool that enables organisation to identify
risk,analyse and mitigate it
 Program manager can take decisions which risk should
get prioritised first
Risk Strategies
 Risk Elimination
 Risk Reduction
 Transfer of Risk
 Risk Planning
 Acceptance of Risk
Conclusions
Risks can never be entirely removed. The main step
is not trying to remove all risks, but to manage
them. The secret of effective risk management is
the ability to qualify and quantify risk elements
objectively and reduce them to acceptable levels.
Rererences:
 Stoneburner, Gary; Goguen, Alice and Feringa, Alexis (July 2002). Risk
Management Guide for Information Technology Systems.
 Risk Management in Software Management and the source is from the link
(http://www.theirm.org/publications/PUstandard.html).
 Boehm, Barry W.. IEEE Software, Jan91, Vol. 8 Software risk management
principles and practices.
 Risk management from the link (http://www.sei.cmu.edu/risk/)
 Software Risk Management by Dedolph, F.Michael, Bell Labs Technical
Journal.
 Software Risk Management.Preview By: Fairley, Michard E.. IEEE Software,
May/Jun2005, Vol. 22 Issue 3
QUESTIONS