Risk in Software Projects

Risk Management

Definition of Risk

The Risk denotes the uncertainty that may occur in the choices due to past actions and risk is something which causes heavy losses.

Definition of Risk Management

Risk Management refers to the process of making decisions based on an evaluation of the factors
that threats to the business.  

Various activities that are carried out for Risk Management are :

1. Risk Identification,


2. Risk Projection,


3. Risk Refinement,


4. Risk Mitigation, monitoring and Management.

Software Risk 

There are two characteristics of the Risks.

1. The risk may or may not happen.  It shows the uncertainty of the risks.


2. When risks occurs, unwanted consequences or losses will occur.

Different Types of Risk

1. Project Risk

Project Risks arise in the Software Development Process then they basically affect budget, schedule, staffing, resources and requirement.  When project risks become severe then the total cost of project gets increased.

2. Technical Risk

These risk affect quality and timelines of the project.  If technical risks become reality then potential design implementation, interface, verification and maintenance problems gets created.  Technical risks occur when problem becomeharder to solve.

3. Business Risk

When feasibility of software product is in suspect then business risks occur.  Business Risks can be further categorized as.

1. Market Risk,


2. Strategic Risk,


3. Sales Risk,


4. Management Risk,


5. Budget Risk,


6. Predictable Risk,


7. Unpredictable Risk.