RISK MANAGEMENT:

Risk occurs when unforeseen events have an adverse effect on the project’s ability to meet its goals.
The goals might be with respect to cost, schedule, or reaching quality (maintaining quality standards)

Risk management is an attempt to minimize the problems caused by these unforeseen events/
unplanned events and reduce the chances of failure caused by these unplanned events.

There are 3 categories of risks:

1. Project risk :
a. This affects the project schedule or resources.
b. Example: Loss of an experienced designer, coder, or any person within the team will
result in delay, as finding an experienced person for the project or training a new
person for the same will result in a delay in schedule and resources.
2. Product risk
a. Risk that is affecting the quality and performance of the software that is being
developed.
b. Example: Failure in the purchase of the component to perform as expected will
make the system slower than the expected one hence affecting performance.
3. Business Risk
a. Risk that affects the organization developing or procuring the software.
b. Example: competitor introducing a new product in the market better than yours or
similar to yours will result in the optimistic situation of sales.

Examples of different types of project, product and business risks.

Stages of risk management

1. Risk identification
a. Identifying possible project, product and business risks.
2. Risk analysis
a. Assess the likelihood and consequences of these risks.
3. Risk planning
a. Making plans to address risk, either by avoiding it or minimizing its effects on the
project.
4. Risk Monitoring
a. Regularly assess the risk and the plans for risk mitigation and revise them when
understanding of the risk increases.
Risk management is a iterative process that continues throughout the project.

Risk Identification: different types of risks that you can use to identify are:

Examples on the above risk types are:

Risk analysis :

Risk estimates should be precise, numeric assessments of the probability and seriousness of each
risk.

Examples of different risk analysis are:

Risk Planning:

This considers each key risks that have been identified and develops strategies to manage these
risks.

The Strategies fall into three categories:

1. Avoidance strategies
a. Following this strategy will result in the probability of arising risk will be reduced.
b. Example: a strategy for dealing with defective components.( see the table below)
2. Minimization strategies
 a. Following these strategies will reduce in the impact
b. Example: see the staff illness strategy from the table below.
3. Contingency plans
a. Prepare for the worst and have a strategy in place to deal with it.
b. See the example of organizational financial problems in the table below:

Risk Monitoring

 Monitoring risks regularly at all the stages in the project.

 Regularly assess and identify the risks to see whether it has become more or less probable.
 There are different factors that may be helpful in assessing risk types and they are:
PEOPLE MANAGEMENT/ MANAGING PEOPLE:

Critical factors in people management are:

1. Consistency people
a. People in a team should all be treated in a comparable way.
b. Each contribution should be identified and not undervalued.
c. No one expects all rewards to be identical.
2. Respect
a. Differences in the people and their skill sets should be respected.
b. All of the team members should be provided with opportunities to make
contributions.
c. Even when you identify a person as not fit for the team in the early stages, still
before jumping to a conclusion we need to understand that it’s just the initial stage
of the project.
3. Inclusion
a. People contribute effectively when they feel that others listen to them and take
account of their proposals.
b. it is important to develop a working environment where all views even those of the
most junior staff are considered.
4. Honesty
a. Should always be honest about what is going well and what is going badly in the
team as a manager
b. trying to cover up ignorance or problems will eventually be found out and the
manager will lose the respect of the group.

Staff selection

Factors governing staff selection are:

Motivating People:

Human needs Hierarchy (Maslow’s)

Personality type also influences motivation ( Bass and Duntemann) -Psychological study of
motivation

1. Task-oriented people
a. motivated by the work they do.
 b. people who are motivated by the intellectual challenge of software development
2. self-oriented people
a. principal motivated by personal success and recognition
b. interested in software development as a means of achieving their own goals
c. they have longer-term goals such as career progression that motivate them and they
wish to be successful in their work to help realize these goals.
3. interaction oriented people
a. motivated by the presence and actions of co-workers
b. software development becomes more user-centred interaction-oriented individuals
are becoming more involved in software engineering.

Managing groups:

Factors that influence the group are: