Risk analysis and management (Pressman)
•	definition
•	identification -- categories
•	categories based on impact
•	risk projection
•	dealing with risk
Definition
•	Determining uncertainty in the project
–	potential problems,
–	their likelihood,
–	the cost if the problem occurs
–	and a plan to manage them
•	Goal is to be prepared and avoid bigger problems
Identifying risks
•	Categories of problems (how might these impact your project?)
–	product size -- disk space/memory required
–	business impact -- management/marketplace constraints
–	customer characteristics
–	software process definition
Identifying risks (continued)
–	development environment (tools used to develop product)
–	technology -- complexity, "newness"
–	staff size and experience
Risk type based on impact
•	overall project risk
–	ex: are there enough people on the team? do end-users have realistic expectations?
•	performance risk -- will the product work satisfactorily?
•	cost risk -- enough money?
•	support risk -- will we be able to maintain/add to the software easily?
Risk type based on impact (continued)
•	schedule risk -- will we finish on time?
•	too high a risk of any of these types and the project may be cancelled (the break point or referent point)
•	should check for combinations of risks as well
Risk projection
•	risk table:
–	description
–	category (product size, business impact, ...)
–	probability (chance risk will occur)
–	impact (ex: 1 is catastrophic, 4 is negligible)
–	accuracy of the projection (filled out later)
Dealing with risk
•	Develop a plan (risk mitigation)
–	find causes of risk
–	determine things to do to either reduce the likelihood or reduce the impact
–	ex: multiple people working on critical components in case someone leaves
Dealing with risk (continued)
•	monitor the situation
•	plan what to do if the risk happens -- ex: if you need to add someone to the team, which part can they work on?
Which risks?
•	risk exposure = probability of occurrence of risk * cost of risk
•	plan for the top 20% risks (ranked by risk exposure)
Risks in “Bank of Allen”?
•	Going back over the articles, what risks did Holub find? How did he resolve them?