(1) Project Risk – Project risk threaten the project plan. Project risk identifies potential budgetary, schedule, personnel (Staffing & organization), resources, customer, and requirement problem and their impact on a software project.
(2) Technical Risk – Technical risks threaten the quality and timeliness of the software to be produced. They include: Implementation problem, Design problem, Maintenance problems, Interfacing problems and technical obsolescence.
(3) Business Risk – Business risk threaten the viability of the software to be built. Candidates for the top five business risks are: (a) Market risk – Where the product is not required in the market (b) Strategic Risk – Where the product does not fill the business strategy of the customer (c) Management Risk – Where the management is no more interested in the project due to change in focus or people of management (d) Budget Risk – Where the management or control on budgetary is lost and at-last (e) Sales Risk – Where the sales force does not find the appropriate & effective method to sell the product.
(4) Known Risk – Known risk are those that can be un-covered after careful evaluation of the project plan.
(5) Predictable Risk – Predictable risks are extrapolated from past experiences (e.g. staff turnover, poor communication with the customer etc).
(6) Un-Predictable Risk – Un-Predictable risks are the joker in the deck. They are extremely difficult to identify in advance. For this kind of risk, reactive risk management strategy needs to be taken.
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