Software Engineering - Old Questions
3. Discuss different types of risks which are likely to arise in software projects. Briefly explain risk analysis stage during risk management process.
Risk is the uncertainty which is associated with a future event which may or may not occur and a corresponding potential for loss.
A software project can be concerned with a large variety of risks. In order to be adept to systematically identify the significant risks which might affect a software project, it is essential to classify risks into different classes. The project manager can then check which risks from each class are relevant to the project.
There are three main classifications of risks which can affect a software project:
- Project risks
- Technical risks
- Business risks
1. Project risks: Project risks concern differ forms of budgetary, schedule, personnel, resource, and customer-related problems. A vital project risk is schedule slippage. Since the software is intangible, it is very tough to monitor and control a software project. It is very tough to control something which cannot be identified. For any manufacturing program, such as the manufacturing of cars, the plan executive can recognize the product taking shape.
2. Technical risks: Technical risks concern potential method, implementation, interfacing, testing, and maintenance issue. It also consists of an ambiguous specification, incomplete specification, changing specification, technical uncertainty, and technical obsolescence. Most technical risks appear due to the development team's insufficient knowledge about the project.
3. Business risks: This type of risks contain risks of building an excellent product that no one need, losing budgetary or personnel commitments, etc.
Risk analysis stage during risk management process
During the risk analysis process, we have to consider every identified risk and make a perception of the probability and seriousness of that risk. Proper risk analysis helps to control possible future events that may harm the overall project.
It is not possible to make an exact, the numerical estimate of the probability and seriousness of each risk. Instead, we should authorize the risk to one of several bands:
- The probability of the risk might be determined as very low (0-10%), low (10-25%), moderate (25-50%), high (50-75%) or very high (+75%).
- The effect of the risk might be determined as catastrophic (threaten the survival of the plan), serious (would cause significant delays), tolerable (delays are within allowed contingency), or insignificant.