DEPARTMENT NAME:MASTER OF COMPUTER APPLICATIONS

Class: I MCA Batch: 2023-2025

Course code:23CAR206 Course Title: OBJECT ORIENTED SOFT-
WARE ENGINEERING

UNIT II PLANNING AND SCHEDULING 9

Planning & Scheduling: Software prototyping – Software project planning – Scope – Resources
– Software Estimation – Empirical Estimation Models – Planning – Risk Management –
Software Project Scheduling – Object Oriented Estimation & Scheduling. Analysis and Design:
Analysis Modeling – Data Modeling – Functional Modeling & Information Flow – Behavioral
Modeling – Structured Analysis – Object Oriented Analysis – Domain Analysis.

2.8 Risk Management

 Risk Management is the system of identifying addressing and eliminating these problems be-
fore they can damage the project.
 We need to differentiate risks, as potential issues, from the current problems of the project

Risk Management

A software project can be concerned with a large variety of risks. In order to be adept to systemati -
cally identify the significant risks which might affect a software project, it is essential to classify
risks into different classes. The project manager can then check which risks from each class are rele-
vant to the project.

There are three main classifications of risks which can affect a software project:

1. Project risks
2. Technical risks
3. Business risks

1. Project risks: Project risks concern differ forms of budgetary, schedule, personnel, resource, and
customer-related problems. A vital project risk is schedule slippage. Since the software is intangible,
it is very tough to monitor and control a software project. It is very tough to control something which
cannot be identified. For any manufacturing program, such as the manufacturing of cars, the plan ex -
ecutive can recognize the product taking shape.

2. Technical risks: Technical risks concern potential method, implementation, interfacing, testing,
and maintenance issue. It also consists of an ambiguous specification, incomplete specification,
changing specification, technical uncertainty, and technical obsolescence. Most technical risks ap-
pear due to the development team's insufficient knowledge about the project.

3. Business risks: This type of risks contain risks of building an excellent product that no one need,
losing budgetary or personnel commitments, etc.

Prepared By: A.BENITA Page 1

 DEPARTMENT NAME:MASTER OF COMPUTER APPLICATIONS
Class: I MCA Batch: 2023-2025
Course code:23CAR206 Course Title: OBJECT ORIENTED SOFT-
WARE ENGINEERING

Other risk categories

1. 1. Known risks: Those risks that can be uncovered after careful assessment of the project
program, the business and technical environment in which the plan is being developed, and
more reliable data sources (e.g., unrealistic delivery date)
2. 2. Predictable risks: Those risks that are hypothesized from previous project experience
(e.g., past turnover)
3. 3. Unpredictable risks: Those risks that can and do occur, but are extremely tough to iden-
tify in advance.

Principle of Risk Management

1. Global Perspective: In this, we review the bigger system description, design, and implemen-
tation. We look at the chance and the impact the risk is going to have.
2. Take a forward-looking view: Consider the threat which may appear in the future and create
future plans for directing the next events.
3. Open Communication: This is to allow the free flow of communications between the client
and the team members so that they have certainty about the risks.
4. Integrated management: In this method risk management is made an integral part of project
management.
5. Continuous process: In this phase, the risks are tracked continuously throughout the risk
management paradigm.

Risk Management Activities:

Risk management consists of three main activities,

Prepared By: A.BENITA Page 2

 DEPARTMENT NAME:MASTER OF COMPUTER APPLICATIONS
Class: I MCA Batch: 2023-2025
Course code:23CAR206 Course Title: OBJECT ORIENTED SOFT-
WARE ENGINEERING

Risk Assessment

The objective of risk assessment is to division the risks in the condition of their loss, causing
potential. For risk assessment, first, every risk should be rated in two methods:

The possibility of a risk coming true (denoted as r).

The consequence of the issues relates to that risk (denoted as s).

Based on these two methods, the priority of each risk can be estimated:

p=r*s

Where p is the priority with which the risk must be controlled, r is the probability of the risk becom-
ing true, and s is the severity of loss caused due to the risk becoming true. If all identified risks are
set up, then the most likely and damaging risks can be controlled first, and more comprehensive risk
abatement methods can be designed for these risks.

1. Risk Identification: The project organizer needs to anticipate the risk in the project as early as
possible so that the impact of risk can be reduced by making effective risk management planning.

A project can be of use by a large variety of risk. To identify the significant risk, this might affect a
project. It is necessary to categories into the different risk of classes.

There are different types of risks which can affect a software project:

1. Technology risks: Risks that assume from the software or hardware technologies that are
used to develop the system.
2. People risks: Risks that are connected with the person in the development team.
3. Organizational risks: Risks that assume from the organizational environment where the
software is being developed.
4. Tools risks: Risks that assume from the software tools and other support software used to
create the system.
5. Requirement risks: Risks that assume from the changes to the customer requirement and the
process of managing the requirements change.
6. Estimation risks: Risks that assume from the management estimates of the resources re-
quired to build the system

2. Risk Analysis: During the risk analysis process, you have to consider every identified risk and
make a perception of the probability and seriousness of that risk.

Prepared By: A.BENITA Page 3

 DEPARTMENT NAME:MASTER OF COMPUTER APPLICATIONS
Class: I MCA Batch: 2023-2025
Course code:23CAR206 Course Title: OBJECT ORIENTED SOFT-
WARE ENGINEERING

1. The probability of the risk might be determined as very low (0-10%), low (10-25%),
moderate (25-50%), high (50-75%) or very high (+75%).

2. The effect of the risk might be determined as catastrophic (threaten the survival of the plan),
serious (would cause significant delays), tolerable (delays are within allowed contingency), or
insignificant.

Risk Control
It is the process of managing risks to achieve desired outcomes. After all, the identified risks
of a plan are determined; the project must be made to include the most harmful and the most likely
risks. Different risks need different containment methods. In fact, most risks need ingenuity on the
part of the project manager in tackling the risk.
There are three main methods to plan for risk management:
1. Avoid the risk: This may take several ways such as discussing with the client to change the
requirements to decrease the scope of the work, giving incentives to the engineers to avoid
the risk of human resources turnover, etc.
2. Transfer the risk: This method involves getting the risky element developed by a third
party, buying insurance cover, etc.
3. Risk reduction: This means planning method to include the loss due to risk. For instance, if
there is a risk that some key personnel might leave, new recruitment can be planned.

Risk Leverage: To choose between the various methods of handling risk, the project plan must con-
sider the amount of controlling the risk and the corresponding reduction of risk. For this, the risk
leverage of the various risks can be estimated.

Risk leverage is the variation in risk exposure divided by the amount of reducing the risk.

Risk leverage = (risk exposure before reduction - risk exposure after reduction) / (cost of re-
duction)

1. Risk planning: The risk planning method considers each of the key risks that have been identified
and develop ways to maintain these risks.

For each of the risks, you have to think of the behavior that you may take to minimize the disruption
to the plan if the issue identified in the risk occurs.

2. Risk Monitoring: Risk monitoring is the method king that your assumption about the product,
process, and business risks has not changed.

Prepared By: A.BENITA Page 4