Importance Of Risk Management in Software Development
To increase the chances of a proposed project succeeding; it is necessary for the organization to have an understanding of potential risks. To systematically and quantitatively assess these risks. Anticipating possible causes and effects, and then chooses appropriate methods of dealing with them. To ensure that any potential risks; are managed effectively. Risk management is thus an important tool to cope with such substantial risks in projects by; Assessing and ascertaining project viability. Analyzing and controlling the risks in order to minimize loss. Alleviating risks by proper planning. Avoiding dissatisfactory projects and thus enhancing profit margins. Applying principles of risk management; supports quality improvement and improves cost estimation; by identifying and mitigating potential risks before a project begins.
Also Read: Steps of Risk Management Process
Risk Management:
Risk management puts processes in place to ensure management receives organized risk information. Early enough to apply corrective actions that will allow realistic schedule and cost estimates. As well as assure successful completion of the project. It’s principles increase team involvement by providing a mechanism for the reporting of potential problems and increasing the team’s stake in the overall success of the project. The embedding of risk is a long-term exercise to ensure that risk consideration is at the heart of the decision-making process. Failure to appreciate risk issues may give rise to serious consequences
The amount of risk management undertaken in a project have a strong link based on the above point; the level of success of the project more successful projects use more risk organising. Also the earlier that risk management was used in a project; the more successful it was. Project Brief is the stage; where the essential risks of the process are accessed. The risks identified here will not only help the production of the necessary project products but will increase the chance of overall project success. If at some point during the process single left problem can become a great danger. The Project Manager should put in place a management mechanism that adheres to the project’s success factors.
