How do you perform risk management in your project?

Risk is something that slows down or stops the progress of our project. It can affect the success or failure of any project. Risks are to be analyzed regularly so as minimize their damage to the project.

There are different types of risks that affect the project namely:

1. Technological risks
2. Skills risks
3. Political risks
4. Business risks
5. Requirements risks
6. Other risks

Technological Risks

The technological risks analysis specify new technological issues that affect the project.

• The software we are building must be of the latest version in the market
• Our software should match other competitors in the market
• The loading time must be as minimum as possible
• The security must be strong enough to not allow hackers

Skills Risks

The skills risks analysis specifies the risk of not getting staff with enough expertise for the project.

• Lack of subject matter expertise leads to failure of the project.
• Insufficient resources cannot help in the timely completion of the project

Political Risks

The political risk analysis helps in identifying political forces that could derail or affect the project.

• The software / product being built should not be leaked to outsiders due to political pressures.

Business Risks

They describe the business implications in case of project failure.

• If the project is cancelled midway, the time, money and efforts of the team get wasted.
• There will be a reputational loss to the organization.
• New projects may not come to us in the future.

Requirements Risks

This subsection of “Risk Analysis” describes the risk that occurs for not correctly describing the requirements.

• Improper requirement gathering leads to the failure of the project.
• In the waterfall model, any change or adjustment in the requirements kills the scope of the project.

Other Risks

• Other risk areas include improper time management, improper allocation of work, poor quality of the testing, bugs in the developed code not found in testing, etc.

Handling of risks:

We cannot avoid all the risks. They can be mitigated only to some extent. Some of the strategies for risk handling include:

• Avoid: To somehow avoid the risk by eliminating it
• Mitigate: To do something to lessen the damage caused by the risk if the risk materializes.
• Transfer: To Pass on the risk to another unit.
• Accept: Accepting the consequences of the risk as they are.