Risk is inherent in the development of any large software system. Specific risks arise, for example, when the product is complex, testing is not feasible, requirements change, or new cost/schedule constraints are imposed. Many project managers choose to ignore these risks, or only address problems if and when they occur. A more pragmatic approach, currently being embraced by leading software development companies, is to address potential problems before they occur. Managing Risk familiarizes project managers with the methodologies necessary to prepare for potential risks and, therefore, steer clear of resource-draining traps and pitfalls. Elaine Hall, a prominent consultant within the risk community, now shares with you detailed information on how to use formal, quantitative risk-management techniques and processes to combat and reduce risks in a software development project.

The growing pains of the software community continue with the increased demand for software systems. The fact that software, the code developed to execute in a computing system, is pervasive in todayIs society is both a problem and an opportunity for managers and engineers. Many software professionals see the problems, but only a few see the opportunities. Problems that cause projects to be late, over budget, or of poor quality are collectively known within the community as the software crisis. Application of traditional problem solving methods to solve the software crisis has been U for the most part U ineffective. The source of the software crisis is the project, process, and product risk that turns into problems because risk management is not done. Risk management differs from traditional problem solving, for the simple reason that a risk is not a problem. By analogy, risk management is to a risk what an algorithm is to a problem. Whereas problems may be solved by application of algorithms, a risk may be resolved by application of risk management.Software-risk management is a practice to resolve risks that affect the software project, process, or product. The purpose of Managing Risk is to help people responsible for software systems to acquire the knowledge necessary to apply software-risk management. This book provides a handy reference to help busy professionals assess and control software risks.This book will enable you to answer the following questions: What does it take to manage software risk? What is my current ability to manage software risk? How can I increase my ability to manage software risk? This book is a practical guide for managing software risk that is easy to use. It describes an approach to manage risk based on proven practices. Whether your level of expertise in managing risk is novice, beginner, intermediate, advanced, or expert, the five stages of risk-management evolution ensure that you know where to start your journey.Because risk is defined as the possibility of loss, traditional works often portray risk with a negative connotation. This book is distinctive in that it has a broad and positive perspective on risk. Risk has long been associated with unmet reliability, safety, and security requirements. Although these requirements are important applications of risk concepts, they do not preclude managing risk to satisfy any other requirement U such as profitability, reusability, and quality. This book makes no assumptions about what your requirements are; it simply encourages you to take a broad view of managing risk to satisfy your requirements and achieve your goals. This book does not judge the consequence of a risk. Instead, risk is reframed in a positive manner; opportunity cost is viewed as a loss. A broad and positive perspective of risk challenges us to exceed expectations through possibility thinking: How can we manage risk to benefit from the enormous opportunity that exists today in the field of software?Audience This book is written for people who manage and develop software systems, including those who hold the responsibilities for oversight and improvement of a software project, product, or process. I assume that you are a busy professional, interested in maintaining a competitive advantage for yourself and your organization. Your job could be one of these: Senior manager, responsible for management of an organization that has a core competency in software. Engineering manager, responsible for functional management of technical individuals who develop or maintain software systems. Project manager of software systems acquisition, development, or maintenance. Software manager, responsible for directing software teams. Systems engineer, responsible for meeting the technical requirements of software systems. Software engineer, responsible for large-scale software development or maintenance. Quality-assu