Improving Risk Management in Software Production - from theory to practice FINESSE SPI 13.4.1999 CCC Software Professionals Jouko Luukas
What is RISK? • Risk is defined as the potential of occurrences that would be detrimental to the project. • Risk may have a negative impact on the project in terms of cost, delay or performance. • An opportunity
RISKs exists - as we all know How it goes: • “I have bad feeling” • “No actions needed, ...later” • “Project looks okey, nothing to worry ? or...” • “I am very busy in project, there was something but” • “It’s too late, it really happened - I actually knew it!” WHY I DIDN’T WORK TO PREVENT RISK ?
Risk factors Environment strategy external contract Company marketing Customer organization finance Project planning definition process Product technical service/ maintenance
What is risk management? • FORECAST, IDENTIFY, QUANTIFY, CLASSIFY, ANALYSE, MITIGATE, AVOID, TRANSFER, REDUCT, MONITOR, CONTROL,… • BUT IN A SYSTEMATIC WAY ! • Risk management is the process of identifying risks, planning to avoid or reduce their consequences and following risks and mitigation action during project life.
The risk management process Identification Assessment Action Plan Follow-up feedbacks Challenge : Integrating risk and project management in a consistent and effective manner
Risk classes Risk Class 1. Strategic 2. Marketing pre 3. Contractual 4. Financial 5. Master plan 6. Definition 7. Process (WBS - Work Breakdown Structure) 8. Product (PBS - Product Breakdown Structure) 9. Organisation (OBS - Organisation Breakdown) 10. Operational 11. Maintenance post 12. External
Risk management approach Company Risk management at organisation level Department 1 Department 2 Project A B C D F E Risk management at project level
Contact CCC Companies Lentokentäntie 15 90460 Oulunsalo FINLAND Tel: +358 8 5205 111 Fax: +358 8 5205 222 e-mail: jouko.luukas@ccc.fi e-mail: riskdriver@ccc.fi www.riskdriver.com www.riskmantools.com
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