Software Development is a Risky Business

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Software Development is a Risky Business!

• Whenever a computer program is to be built, there
  are areas of uncertainty..

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Software is a Risky Business!

• Why Uncertainty?

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Why Uncertainty?

• Are the needs of the customer really understood?
• Can the functions that must be implemented be
  accomplished before the project deadline?
• Will there be difficult, hidden technical
  problems?
• Will the changes that invariably occur cause the
  schedule to slip badly?

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What is risk?

• Risk recognized the reality of change.
• Risk concerns future happenings.

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• Risks are the consequences
• of
• Inadequate Information!

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Risk analysis

• - risk identification
• - risk assessment
• - risk management

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Risk identification --

• Identify ALL the risks that are OBVIOUS to both
  managers and practitioners.

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Categories of risk

• Technical risk
• Business risk
• Product risk
• Project risk

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Categories of risk Technical risk
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Categories of risk Business risk
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Categories of risk

• Product risk
• Project risk

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What is the BEST way to deal with Risk?
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What is the BEST way to deal with Risk?

• Expect the unexpected, it invariably occurs!

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Risk Assessment

• Rate each risk in two ways
• 1) What is the likelihood that the risk is real?
• 2) What is the consequence of the problem if the
  risk does occur?

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Risk Reduction ALARP?

• ALARP As Low As Reasonably Practical
• Once potential hazards and their causes have been
  identified, the system specification should be
  formalized in such a way that these hazards are
  unlikely to result in an accident!

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Risk Reduction
Unacceptable region Risk cannot be
tolerated Risk tolerated only if risk
reduction is impractical or grossly
expensive. Acceptable region
ALARP Region
Negligible Risk
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Risk Reduction

• 1) Hazard avoidance
• 2) Hazard Probability Reduction
• 3) Accident Prevention

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Risk Reduction Hazard avoidance

• Design system so that hazards CANNOT arise.

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Risk Reduction Hazard Probability Reduction

• Design system so that the likelihood of hazard
  occurring is reduced.
• Design system so that risk cannot occur as the
  result of any single action or error.

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Risk Reduction Accident Prevention

• Design system so that risks can be detected and
  recognized.
• Design an accident monitoring system.