What Is Risk in Software Project Management: Insider’s Explanation

We are a professional software development team with advanced expertise in project management. With our expert PMs you can be sure that you are in the safe hands. However, in every project there are always several risks that should be taken into account when developing software. Today we will discuss what is risk in software project management and how we cope with vital issues during our work.

What Issues Are Considered Risks

Risk is an expectation of loss and a potential problem that may occur or not in the future. It is usually caused by lack of time, control or information. The possibility of loss in the software development process is called software risk. Losses can be anything, production costs rise, software quality is poorly developed and projects can not be completed on time. The software risk exists because the future is uncertain and there are many things that can not be included in the project plan. There are two types of software risks:

Internal risks within the PM’s control;
External risks beyond the PM’s control.

The Areas of Risk Management

As experienced professionals, our PMs are in charge of the following:

Identify the risk
Reduce its impact
Reduce likelihood or possibility
Risk monitoring

The project manager must address the risks presented by three possible situations:

Software risks that are known to the entire project team. For example, there are not enough developers and there is a possibility of project delivery delay. These risks are described and included in the project management plan.
The risks that the project team knows, but they do not know if such risks arise in the project. For example, if the level of communication with the client is not high, the requirements can not be captured correctly. This is a known fact for the project team, but nobody knows whether the client has correctly communicated all the information.
The risks the organization does not know. These risks are often related to technology, such as the use of technologies or tools the developers do not know, because the customers want you to work that way, and suddenly expose you to the risks that are absolutely unknown.

Software risk management is entirely about quantification of issues. That includes:

Accurately describe possible risk events in the project
Define risk probabilities to explain the likelihood
Define how much damage a particular risk can cause
Determine the potential liability of risk

Risk management includes the following processes:

Identification
Analysis
Planning
Monitoring

A professional team is always ready for challenges

To determine the risks your project may face, it is important to first study the problems faced by previous projects. Our team properly study the project plans and examine all possible areas that are susceptible to one or other type of risk. The best way to analyze a project plan is to convert it to a flowchart and check all the key areas. It is important to have some brainstorming sessions to identify known unknowns that might affect the project. Any decision related to operational, political, technical, social, legal, internal or external factors must be duly evaluated. We have gathered only best specialists in our team to guarantee your project’s success. Contact us today to discuss your needs and requirements.