Session 7 Risk and Change Management

Principle of Project
Management, Fall 2008

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Software Project Management
Session 7: Risk and Change Management
Principle of Project
Management, Fall 2008

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Today
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Risk Management
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Change Control
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Configuration Management
Principle of Project
Management, Fall 2008

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Risk Management
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Problems that haven’t happened yet
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Why is it hard?
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Some are wary of bearing bad news
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No one wants to be the messenger
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Or seen as “a worrier”
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You need to define a strategy early in your
project
Principle of Project
Management, Fall 2008

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Risk Management
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Definition of Risk: An uncertain event or
condition that, if it occurs, has a positive or
negative effect on a project objective.
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Identification, Analysis, Control
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Goal: avoid a crisis
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Thayer: Risk Mgmt. vs. Project Mgt.
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For a specific vs. all projects
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Proactive vs. reactive
Principle of Project
Management, Fall 2008

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Project Risk
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Characterized by:

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Uncertainty (0 < probability < 1)
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An associated loss (money, life, reputation, etc)
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Manageable – some action can control it
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Risk Exposure
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Product of probability and potential loss
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Problem
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A risk that has materialized
Principle of Project
Management, Fall 2008

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Types of Risks
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Schedule Risks
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Schedule compression (customer, marketing, etc.)
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Cost Risks
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Unreasonable budgets
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Requirements Risks
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Incorrect
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Incomplete
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Unclear or inconsistent
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Volatile
Principle of Project
Management, Fall 2008

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Types of Risks
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Quality Risks
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Operational Risks
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Most of the “Classic Mistakes”
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Classic mistakes are made more often
Principle of Project
Management, Fall 2008

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Types of Risks
Known risks
- Unclear requirements
- Inexperienced team
Unknown risks: Foreseen based on experience
- Difficult communication with customer

- Fluctuation within team
Unknowable risks: Cannot be foreseen
- Half of the team gets fish poisoning at first social
event
- Earthquake wipes out production plant
Principle of Project
Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Principle of Project
Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Management, Fall 2008

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Principle of Project
Management, Fall 2008

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Miniature Milestones
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A risk-reduction technique
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Use of small goals within project schedule
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One of McConnell’s Best Practices (Ch. 27)
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Fine-grained approach to plan & track
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Reduces risk of undetected project slippage
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Pros
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Enhances status visibility
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Good for project recovery

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Cons
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Increase project tracking effort