Chapter 18. Determining Project Risks

Software risk management is the formal process in which risk factors are systematically identified, assessed, and mitigated. The determination of the risk in a project, either due to external or internal causes, is a major part of project management. The PMBOK defines risk as “a subset of project management that includes the processes concerned with identifying, analyzing, and responding to project risk. It consists of risk identification, risk quantification, risk response development, and risk response control.”^[1] In order to aid the project manager in risk determination and management, this chapter will answer these questions:

• What is risk management all about?

• What are some risk management models?

• How are risks identified?

• How are risks analyzed and quantified?

• How are risk responses developed and risks controlled?

• What are the steps in developing a risk management plan?