Risk Management

Risk analysis and management are a series of steps that help a software team to understand and manage uncertainty. A risk is a potential---it might happen, it might not. In ideal risk management, a prioritization process is followed whereby the risk with the greatest loss and the greatest probability of occurring are handled first and risks with lower loss and lower probability of occurring are handled in descending order.

Principle of Risk Management

(1) Risk management should create value.

(2) Risk management should be an integrate part of organizational processes.

(3) Risk management should be part of decision making.

(4) Risk management should be systematic and structured.

(5) Risk management should be based on the best available information.

(6) Risk management should be transparent and inclusive.

(7) Risk management should be tailored.

(8) Risk management should be dynamic, iterative and responsive to change.

Risk Management Strategy – There are to types of Risk management strategies:

(a) Reactive risk Strategy: Reactive risk Strategies follows that the risks have to be tackled at the time of their occurrence. No precautions are to be taken as per this strategy. They are meant for risks with relatively smaller impact.

(b) Proactive risk strategy: Proactive risk strategies follows that the risks have to be identified before start of the project. They have to be analyzed by assessing their probability of occurrence, their impact after occurrence and steps to be followed for its precaution. They are meant for risks with relatively higher impact.    

To Download: http://www.megaupload.com/?d=7269JQUB