Explain Categories of risk

Categories of risk The categories of risks which can affect a software project Project risks

  • They threaten the project plan
  • If they become real, it is likely that the project schedule will slip and that costs will increase

  Technical risks

  • They threaten the quality and timeliness of the software to be produced
  • If they become real, implementation may become difficult or impossible

Business risks

  • They threaten the feasibility of the software to be built
  • If they become real, they threaten the project or the product

Known risks

  • Those risks that can be uncovered after careful evaluation of the project plan, the business and technical environment in which the project is being developed, and other reliable information sources (e.g., unrealistic delivery date)

  Predictable risks

  • Those risks that are deduced from past project experience (e.g., past turnover)

Unpredictable risks

  • Those risks that can and do occur, but are extremely difficult to identify in advance

Sub-Categories of risk

  • Market risk – building an excellent product or system that no one really wants
  • Strategic risk – building a product that no longer fits into the overall business strategy for the company
  • Sales risk – building a product that the sales force doesn’t understand how to sell
  • Management risk – losing the support of senior management due to a change in focus or a change in people
  • Budget risk – losing budgetary or personnel commitment

Leave a Reply