1.] What is Risk?
Risk is a concept that denotes precise probability of specific eventualities. Technically, the notion of risk is independent from the notion of value and, as such, eventualities may have both beneficial and adverse consequences.
2.] Identify at least 5 software risk? Discuss each.
Identify: Before risks can be managed, they must be identified. Identification surfaces risks before they become problems. The SEI has developed techniques for surfacing risks by the application of a systematic process that encourages project personnel to raise concerns and issues. One such method, the SRE, is described in a subsequent section.
Analyze: Analysis is the conversion of risk data into risk decision-making information. Analysis provides the basis for the project manager to work on the “right” and most critical risks.
Plan: Planning turns risk information into decisions and actions. Planning involves developing actions to address individual risks, prioritizing risk actions, and creating an integrated risk management plan. The plan for a specific risk can take many forms. For example: • Mitigate the impact of the risk by developing a contingency plan (along with an identified triggering event) should the risk occur.
• Avoid a risk by changing the product design or the development process.
• Accept the risk and take no further action, thus accepting the consequences if the risk occurs.
• Study the risk further to acquire more information and better determine its characteristics to enable wiser decision-making. The key to risk action planning is to consider the future consequences of a decision made today.
Track: Tracking consists of monitoring the status of risks and the actions taken to ameliorate them. Appropriate risk metrics are identified and monitored to enable the evaluation of the status of as well as of risk mitigation plans. Tracking serves as the “watchdog” function of management.
Control: Risk control corrects deviations from planned risk actions. Once risk metrics and triggering events have been chosen, there is nothing unique about risk control. Risk control melds into project management and relies on project management processes to control risk action plans, corrects for variations from plans, responds to triggering events, and improves risk management processes.
Communicate: Risk communication lies at the center of the model to emphasize both its pervasiveness and its criticality. Without effective communication, no risk management approach can be viable. While communication facilitates interaction among the elements of the model, there are higher level communications to consider as well. In order to be analyzed and managed correctly, risks must be communicated to and between the appropriate organizational levels.
3.] Identify risk management strategies.
Risk Management Strategies include the following:
Risk Avoidance Risk Abatement
Risk Retention
Risk Transfer
Risk Allocation
Risk Avoidance is just that, avoiding the risk associated with a specific task, activity or project. Often, following the review of a contract, it is determined that a project is just too risky. The client may decide not to bid the work at all, or remove that element of the work from their bid, sometimes using an alternate deduct to delineate the exclusion. Risk avoidance is strictly a business decision, and sometimes a very good strategy if construction documents are unclear, ambiguous or incomplete.
Risk Abatement is the process of combining loss prevention or loss control to minimize a risk. This risk management strategy serves to reduce the loss potential and decrease the frequency or severity of the loss. Risk abatement is preferably used in conjunction with other risk management strategies, since using this risk management method alone will not totally eliminate the risk.
Risk Retention is a good strategy only when it is impossible to transfer the risk. Or, based on an evaluation of the economic loss exposure, it is determined that the diminutive value placed on the risk can be safely absorbed.
Risk Transfer is the shifting of the risk burden from one party to another. This can be done several ways, but is usually done through conventional insurance as a risk transfer mechanism, and through the use of contract indemnification provisions.
Risk Allocation is the sharing of the risk burden with other parties. This is usually based on a business decision when a client realizes that the cost of doing a project is too large and needs to spread the economic risk with another firm.
4.] You are asked by your manager to deliver software to a schedule which you know can only be met by asking your project team to work unpaid overtime. All team members have young children. Discuss whether you should accept this demand from your manager or whether you should persuade your team to give their time to the organisation rather that thier families. What factors might be significant in your decision?
5.] As an IT student that has been trained for Java Programming, you are offered a home based job as a project manager for a certain software project, but you feel that you can make more effective contribution in a technical specifically doing progamming module using Java for the project rather than a managerial role. Discuss whether you should accept the job.
6. Send me your email add to Yn.logoff@gmail.com, including your name. This is to enable me to send lecture notes and presentations in you.
