2.1 Recap on Chapter 1

From the previous chapter you will have ascertained the importance of having a global perspective of risk. That is:

• Viewing software project risk within the context of the larger system definition, and

• Recognizing both the potential value of opportunity and the potential impact of adverse effects, such as cost, delay, and failure to meet project objectives.

It is also important to note that the software risk paradigm has three fundamentally different, albeit complementary objectives:

1. Risk prevention

2. Risk mitigation and correction

3. Protection from litigation (or financial loss).

In this chapter we will explore at a more detailed level some of the topics, issues and concerns highlighted in the previous chapter.

2.2 Identifying Software Risk

In software development projects the need to manage risk increases with the complexity of the project. Theorists (and some practitioners) agree there is an increasing need for more systematic methods and tools to supplement individual knowledge, judgement and experience. Human traits alone are often insufficient to address complex risk. There is some evidence to suggest that managers believe that they are managing risk in complex dimensions. In essence they are merely managing the basics, that is cost, scheduled delay and some isolated cases of technical risk.

Many of the most dramatic failures and issues in software projects are the result of risks that either remain unrecognized and/or ignored until they have already created serious consequences. The focus on risk is important because structured methods, even simple...