Software Engineering - Old Questions

3. What is risk management? Explain risk management process.

Risk management is the identification, evolution and prioritization of risks followed by coordination and economical application of resources to minimize, monitor and control the probability or impact of unfortunate events or to maximize the realization of opportunities. The risk management involves anticipating risks that might affect the project schedule or the quality of software being developed and taking appropriate action to avoid risk.

Risk management process:

1) Risk identification:

    Possible project, product, and business risks are identified.

2) Risk analysis:

    The like hood and consequence of these risks are assessed.

3) Risk planning:

    Plans to address the risk either by avoiding it or minimizing its effect on the project are drawn up

4) Risk monitoring:

    Risk is constantly assessed and plans for risk avoidance.

The risk management process is an iterative process which continues throughout the project. Once an initial set of plans are drawn up, the situation is monitored. As more information about the risk becomes available, the risk has to be analyzed and new priorities are established. The risk avoidance and contingency plans may be modified as new risk information emerges. Manager should document the outcomes of the risk management process in a risk management plan. This should include a discussion of the risk faced by the project, analysis of these risks and plans that are required to manage these risks.