Software Risks

Moreover there has been considerable debate in between the proper definition for software risk there is general agreement that risk always involves two characteristics

Uncertainty: this is an event that characterizes the risk may or may not happen for example there are no 100 percent probable risks.

Loss: If the risk becomes an unwanted consequences reality, or losses will occur.

Whenever risks are analyzed it is important to quantify the stages of uncertainty and the degree of loss related with each risk. To accomplish this various types of risks are considered.

Project risks threaten the project plan. Which is if project risks become original, it is likely that the project schedule will slip and that costs will rise. Project risks identify potential schedule, budgetary, personnel, resource, customer, and needs problems and their impact on a software project. Project size, complexity, and the degree of structural uncertainty were also described as project risk factors.

Technical risks threaten the excellence and timeliness of the software to be produced. If a technical risk becomes a reality, implementation may become hard or impossible. The Technical risks identify potential design, interfacing, verification, implementation, and maintenance problems. Additionally specification ambiguity, technical obsolescence, technical uncertainty, and leading-edge technology are also risk factors. Technical risks occur because the problem is difficult to solve than we thought it would be.

Business risks threaten the viability of the software to be developed. Business risks often jeopardize the product or the project. Candidates for the top 5 business risks are as below

(1) To building an excellent product or system that no one really wants.

(2) To building a product that no longer fits into the overall business strategy for the company.

(3) To building a product that the sales force does not understand how to sell.

(4) To losing the support of senior management due to a change in focus or a change in people and

(5) To losing budgetary or personnel commitment. That is extremely important to note the simple categorization will not always work. Many risks are simply unpredictable in advance.

Charette [CHA 89] has purposed another general categorization of risks. Known risks are those which can be uncovered after careful evaluation of the project plan technical environment and the business in which the project is being established and other reliable information sources for example unrealistic delivery date, lack of documented need or software scope poor development environment. The predictable risks are extrapolated from previous project experience for example staff turnover poor communication with the customer dilution of staff effort as ongoing maintenance requests are serviced.  They can and do occur but they are extremely hard to identify in advance. The unpredictable risks are joker in the deck.