TAILIEUCHUNG - Components of Software Development Risk: How to Address Them? A Project Manager Survey

All project communication activities will occur within the project’s approved budget, schedule, and resource allocations. The project manager is responsible for ensuring that communication activities are performed by the project team and without external resources which will result in exceeding the authorized budget. Communication activities will occur in accordance with the frequencies detailed in the Communication Matrix in order to ensure the project adheres to schedule constraints. Any deviation of these timelines may result in excessive costs or schedule delays and must be approved by the project sponsor. . | 98 IEEE TRANSACTIONS ON SOFTWARE ENGINEERING VOL. 26 NO. 2 FEBRUARY 2000 Components of Software Development Risk How to Address Them A Project Manager Survey Janne Ropponen and Kalle Lyytinen Abstract Software risk management can be defined as an attempt to formalize risk oriented correlates of development success into a readily applicable set of principles and practices. By using a survey instrument we investigate this claim further. The investigation addresses the following questions 1 What are the components of software development risk 2 how does risk management mitigate risk components and 3 what environmental factors if any influence them Using principal component analysis we identify six software risk components 1 scheduling and timing risks 2 functionality risks 3 subcontracting risks 4 requirements management 5 resource usage and performance risks and 6 personnel management risks. By using one-way ANOVA with multiple comparisons we examine how risk management or the lack of it and environmental factors such as development methods manager s experience influence each risk component. The analysis shows that awareness of the importance of risk management and systematic practices to manage risks have an effect on scheduling risks requirements management risks and personnel management risks. Environmental contingencies were observed to affect all risk components. This suggests that software risks can be best managed by combining specific risk management considerations with a detailed understanding of the environmental context and with sound managerial practices such as relying on experienced and well-educated project managers and launching correctly sized projects. Index Terms Software risk risk management software development project management system failures process improvement. -------------------------- ---------------------------- 1 Introduction SOFTWARE development suffers chronically from cost overruns project delays unmet user needs and unused systems .

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