Lecture 17 - Risk Management slides PDF

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Summary

• Understand and remember the definition of risk.
• Understand and explain the purpose of the risk management process and its
fundamental activities.
• Know how to identify and assess risks....

Description

Software Engineering I

Risk Management Miguel Morales – Computer Science and Software Engineering Department

LOs • Understand and remember the definition of risk. • Understand and explain the purpose of the risk management process and its fundamental activities. • Know how to identify and assess risks.

What can go wrong in a project? • Each project is a mix of many variables, some of them are outside of our control and others are unknown until they just happen. – – – – – – –

Loss of key staff. Lack of experience. Poor decision making. Change of priorities. Work outside the scope. Budget cuts. Emergencies and natural disasters.

• Assume that everything can go wrong.

What can go wrong in a project? • Well known and we have a degree of control over them. – For example, “the workload distribution”.

• Also known but outside of our control. – For example, “the contribution of your teammate to the project”.

• Unknown until they just happen. – We are in the middle of a global situation that was not planned or foreseen but it is affecting all of us.

• These examples of situations that could influence our projects are called risks.

Risks • Risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on a project's objectives [PMI]. • Risk management focuses on identifying and assessing the risks to the project and managing those risks to minimize their impact on the project.

Risk Management • Risk management is defined as “the systematic application of management practices, policies, and procedures for identifying, analyzing, controlling and monitoring risk”. • Commonly, risk management includes the following activities: – – – – – –

Identify risks and their triggers Assess, classify and prioritize all risks Develop a plan that states a mitigation strategy to each risk Monitor for risks and risk triggers during the project Implement the mitigating action if any risk occurs Communicate risk status throughout team

Risk Management • Identify what risks might have an impact on your project. – – – –

Root Cause Analysis Brainstorming Interviewing SWOT Analysis

Risk Management • Risk management means risk containment and mitigation. • The mitigation options include: – – – –

Accept: acknowledge that a risk is impacting the project. Avoid: adjust project scope, cost or schedule to minimize the effects of the risk. Control: take action to minimize the impact or reduce the intensification of the risk. Transfer: implement an organizational shift in accountability, responsibility, or authority to other stakeholders that will accept the risk.

Risk Management • A common approach for prioritizing risks is to consider two aspects: – Severity is the amount of damage or harm a risk could create. How severe it will be. 1. Negligible 2. Minor 3. Critical 4. Catastrophic

– Probability is the likelihood of the risk occurring. How often it will occur? 1. 2. 3. 4. 5.

Improbable Remote Occasional Probable Frequent

Risk Management • In order to represent these two aspects, we can use a risk matrix. – The risk assessment values are determined by multiplying the scores for the Probability and Severity values.

Risk Management • Develop a plan that states a mitigation strategy to each risk. • Monitor for risks and risk triggers during the project. • Implement the mitigating action if any risk occurs. • Communicate risk status throughout team frequently. • Risk identification and management activities must remain active during the whole project....