Risk Management Process

Risk Management Process

We discussed that risk management implies proactively identifying, analyzing, planning, tracking and controlling the risks so as to reduce the probability and the impact associated with the risk. Risk Management is done throughout the life cycle of a project. Following flowchart describes the process that is followed by many custom software development companies in India.

Fig 1 : Risk Management Process

Project Initiation: Project Kick-off meeting is scheduled on the initiation of every project followed by knowledge transfer between Client and PM. During this stage important aspects of the project and the requirements are exchanged. Risk checklist is used by project managers to identify initial risks in the project.

Project Analysis: Based on the information exchanged with the client, appropriate functional specifications and technical specifications are laid down. Based on the analysis carried out, technical tasks to be carried out as listed and assigned to developers. Project Plan is submitted to the client at this stage.

Risk Identification: During the analysis phase of the project, various risks related to the project are identified and recorded. Risks are typically classified based on the categories and factors associated to each category.

Probability and impacts are two factors on which risks are quantified.

Mitigation Strategy and contingency planning: Once the risk is recorded along with its severity, appropriate mitigation strategy and contingency planning are necessary to devise in order to eradicate or minimize the probability of the unfortunate event in the project. Mitigation strategy and contingency planning are linked to risk and monitored throughout the project life cycle.

Above process can help software companies in India to deliver projects within time and budget with required quality standards.