Content

Overview
Risk Exposure
1. Risk Mitigation
Types of Risk
1. Technical/Product Risk
2. Non-Technical Risk
Risk Profile
Iterative & Incremental Process
1. Risk Driven
2. Iterative Cycle
3. Benefits

Overview

Potential problem -> loss & threat to success of project
Adverse impact on cost, schedule, technical success, quality

Risk Exposure

Uncertainty
- No 100% risks; they would be constraints
Impact
Risk exposure = uncertainty * impact

Risk Mitigation

Risk avoidance
Risk limitation/reduction
- Reduce probability or impact
Rick transfer
- Not a full transfer
- Make it someone else's problem who can better manage it
Risk acceptance
- Monitor & rely on contingency action if risk materializes

Types of Risk

Technical/Product Risk

New Technology adopted or needed
Architecture supporting required functionality, suitability of framework, ability to meet quality requirements
Building the right system, identify true functional & non-functional requirements

Risk-driven & client-driven:
maintain requirements in a separate list other than the risk list, prioritized by importance to client.

Non-Technical Risk

Project risk
- Schedule, resources
Business risk

Real risks but not useful for driving actual development.
Identified, tracked, and handled by managers.
Usually out-of-scope when planning development work.

Risk Profile

Iterative & Incremental Process

Develop in a sequence of iterations (small, self-contained mini-projects)
Setting goals for each iteration at the start of iteration -> deal with change
Deliverable of each iteration is a working release: stable, integrated, tested, partially complete
An iteration builds on top of the previous iteration
Additional advantage: users cannot wait for fully functional system to be developed

Risk Driven

Do the most critical & uncertain stuff first.

-> Identify & ------> Select next incremental step ------> develop executable
prioritize risks      to deal with the next highest risk   that eliminates the risk

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Iterative Cycle

Benefits

Early mitigation of big risks
Early visible progress
Early feedback, user engagement, adaptation
Complexity managed (no attempt to do all analysis up-front)
Experience during an iteration helps improve later iterations

Risk