Risk Management. Kickoff Presentation
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1 Risk Management Kickoff Presentation The Process Group Tel Fax Copyright Intent The attendee of the classes Software Project Planning and Management has permission to make one set of transparencies of these Kickoff slides for the purpose of conducting the Risk Management session internally within his/her organization. R1 311
2 Determine Risks and Set Priorities Start Review Status Status & Phase Phase Establish Requirements & Negotiate Develop WBS WBS & Estimates Measure Progress & Refine Refine Determine Risks Risks & Set Set Priorities Review Commitment & Negotiate Create Create Project Schedule O19 R2 153
3 What is a Risk? Risk Management A risk is anything negative that could happen O20 R3 154
4 Risk Management Cycle Risk Management Start Identify Risks Analyze Risks Review Risks Plan Defects to Mitigate Risks should be be identified and and managed throughout the the project O21 R4 155
5 Risk Identification Risk Identification Create a list of potential future problems Risk does not include current problems, things that are about to happen, or that are certain to occur Current problems should be tracked on a problem list Suggestions Mr. Risk Project manager creates a list Brainstorming works well with the project team Include anyone who may help you think of more risks People who have done similar projects and tasks Technical experts Customer champions O22 R5 156
6 Risk Identification What to Look For Weak areas such as unknown technology new, or new to the team (e.g., development tools, target machine) Things that are critical or extremely important to the effort such as the timely delivery of a vendor's database software, creation of translators, or a user interface that meets the customers' needs Things that have caused problems in the past such as loss of key staff, missed deadlines, or error-prone software O23 R6 157
7 Risk Analysis For each risk item: Does the team understand this risk item?» If necessary, split into separate risk items Disk may overload under condition X Disk may overload under condition Y Discuss and determine its scope:» What would the consequences be if this risk item did occur? Determine what the impact would be if the worst happened, using a scale of one to ten.» This could vary by life cycle phase or time-frame Determine how likely it is that the risk item will occur, using a scale of one to ten. Determine the priority of the risk items using impact x likelihood. Risk Analysis R7 163
8 Setting Priorities Example Risk Analysis Risk Item (Potential Future Problem) Consequence Likelihood Impact Priority New operating system might not be stable Unable to ship 0 System communication problems with XYZ Feature x unavailable We may not have the requirements right Delay next project + no usage of demo Requirements may change late in the cycle New defects Database S/W might be late Revenue delay Database expert might leave Schedule delay 2 20 R8 165
9 Risk Planning Risk Management Plan Summary Action items will likely be more numerous and detailed Status of action items Risk Item (Potential Future Problem) Consequence Lkli. Imp. Pri. Action- Likelihood Action-Impact Who When Status New operating system might not be stable Unable to ship 0 Test OS more Identify 2nd OS Joe System communication problems with XYZ Feature x unavailable Develop sys interface doc Add replan milestone Kim We may not have the requirements right Delay next project + no usage of demo Prototype of UI Use Case style requirements Incremental release Limit distribution Lois Requirements may change late in the cycle New defects Prototype top requirements Limit distribution Joe Database S/W might be late Revenue delay Check with supplier Help supplier Pete Database expert might leave Schedule delay 2 20 Make sure Jim is happy Earmark Fred Jane Keep track of of the top 20% or or top 2-3 risks O24 R9 169
10 Risk Planning Comprehending Analysis Results in the Project Plan Project Tasks 1Task A 2Task B 3Task C 4Task D 5Task E 6Task F Risk Analysis Move high-risk task earlier in schedule AND/OR breakdown into more detail AND/OR add more time to task Change decision that caused this risk Add new risk action items to schedule if ~1 week, otherwise keep on action item list Project Tasks 1Task D 2Task A 3Task B 4Task C 5Task E 6Task F 1a.Task G 1b.Task H 5a.Task I The project team should direct its attention to the higher risk, rather than the easier (lower risk) tasks (within customer and schedule constraints) R 170
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