Risk Analysis in IT Related Projects
By Andreas Maratheftis on Saturday, 17 of February , 2007 at 11:46 am
Risk Analysis
Risk in the PRINCE2 terminology is identified as “The chance of exposure to the adverse consequences of future events.” (B. Hughes et al, 2004, p95). These can cause the project to fail, or not meet the specified requirements, thus identifying and estimating risks early on in the project lifecycle may prevent those “adverse effects” from happening.
Risks can be identified as “project risks” or “business risks” (B. Hughes et al, 2004, p95). Project risks are threats directly affecting the project lifecycle resulting in the project failure, not achieving the specified results of costs, requirements and time; whereas business risks are risks directly associate with the business which have as consequence the project failure due to external or internal business issues.
Risks can be internal to the project or external. These threads have to be first identified. By identifying the risks; their proximity of happening, the severity and the impact that would be caused on the project but also to the company. Plans have to be made so that each risk identified can be dealt with monitored and control so that it would not have any adverse effects on the project. An implementation risk analysis should also be drawn in the project documents in order to fully cover the project risk planning.
Risk Counter-measures
There are various risk counter measures that can be used to reduce or avoid risk.
These countermeasures will be followed during the project in case on or more of the risks mentioned below occur. (http://www.coleyconsulting.co.uk/)
Eliminate the risk: Eliminate the risk completely based on the contingency plans and actions.
Cease the activity: If the current activities are considered “risky” then it should be stopped and revise the course of action
Reduce the likelihood: Try and reduce the likelihood of each risk occurring by taking evasive actions.
Reduce the impact: When the risk arise take action so that the impact in the overall project is minimised.
Avoid: If the action is considered hazardous then it would be better if that action or processed is avoided completely.
Accept risk: Accept the occurrence of the risk; comply and adapt to the current situation
References
- Bob Hughes and Mike Cotterell, 2002, Software Project Management, Third edition, IS, McGraw Hill International Limited, ISBN 00770983
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Category: Risk
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