Risk evaluation

 

Risk evaluation:

The Top-10 Risks List is a simple tool that helps us and our customers monitor the risks on a software project. The list consists of 10 of the most serious risks to a project ranked from 1 to 10, each risk’s status, and a plan for addressing each risk. The act of updating and reviewing the Top-10 Risks List each week raises the awareness of risks and contributes to the timely resolution of them.

Creating the Top-10 Risks list consists of the following:

  1. Risk Assessment: This consists of the following three parts:
  2. • Risk Identification: The first step in producing the Top-10 Risks list is to identify the factors that pose a risk to the project schedule. For example, a potential risk with respect to requirement is that ‘Requirements have been base lined but continue to change’ or ‘Vaguely defined areas of the application are more time-consuming than expected’.
    • Risk Analysis: The next step is to assess the likelihood and impact of each risk and the risk levels of alternate practices. A useful risk analysis practice is to determine the “risk exposure” of each identified risk. Risk exposure is equal to the probability of the unexpected loss multiplied by the size of the loss. For example, if there is a 25% chance that it will take 4 weeks longer to get the project approved, then the risk exposure is 1 week.
    • Risk prioritization: produces a list of risks prioritized by impact. This list serves as a basis for risk control.
  4. Risk Control: Risk control is made up of risk-management planning, risk resolution, and risk monitoring.
  1. • Risk Management Planning produces a plan for dealing with each significant risk. It also makes sure that the risk-management plans for each of the individual risks are consistent with each other and with the overall project plan. The risk management plan can be as simple as a paragraph for each risk that describes who, what, where, why, and how of each risk’s management.
    • Risk resolution The resolution of any particular risk depends a lot on the specific risk. Sometime it helps to investigate the risk further, or to collect more information about the risk. This also includes developing the contingency plans to handle the risk, in case it does not get resolved.

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