Software Testing - Risk Management
Software development is always associated with risks. A risk is defined as a problem which has a certain probability of occurring while working with the software or during the course of the project development. A risk can have the features namely uncertainty, and loss. Uncertainty refers to those risks which do not have the surety of occurrence while loss refers to the unpleasant circumstances or losses that take place when the risks actually happen in reality.
What is Software Risk Management?
Risk management is a methodical procedure of identifying, analyzing, and handling hazards that impact the budget, capital, and overall working of a company. These hazards can originate from various areas namely financial uncertainty, legal loopholes, bottlenecks in the strategizing, untoward incidents, and natural calamities. The fundamental objective of risk management is to forecast the potential risks, and determine the solutions to handle them effectively.
Why is Software Risk Management Essential?
Risk management is essential as it helps every company to make itself ready for the unanticipated situations which can range from minor problems to critical issues. By effective risk management, the organizations can secure their financial resources, continue normal working, and survive tough circumstances.
For example, one of the key developers in the team may not contribute to the software development due to health issues. In order to overcome such a situation, the team utilizes collaborative tools, and methodologies so that every member in the team has the same understanding of all activities being carried out by the team as a whole. Organizations should provide the resources to mitigate all the potential risks by using a uniform, methodical, and collective approach.
Process of Software Risk Management
The process of software risk management are listed below −
Determining the Risks
It is the methodical process of determining and analyzing the probable risks that can affect an organizations working and reputation. It finds different kinds of risks namely IT security hazards originating from viruses, phishing threats, non-functional machineries, and harsh weather.
Analysis of Risks
It is the process of analyzing and comprehending the effects of risks, and the probability of occurrences of the targeted risks for a company. It decides how adversely the risks can affect and how they can be avoided. Thus risk analysis is all about determining likelihood for the risks, and their outcomes.
Planning for Risks
It is the process of coming up with plans, and activities to overcome and mitigate the targeted risks efficiently. It outlines how to react in the event of risks by using prevention, reduction, and alternatives so that the organizations goals and infrastructures can be made safe and secure.
Monitoring of Risks
It is the process of keeping track of the statuses, modifications, and mitigation plans of the associated risks. It also includes periodic reviews of these risks so that the organizations goals are maintained.
Types of Risks in Software Projects
The various types of risks in the software projects are listed below −
1. Project Risks
They are related to the budget, timelines, resources, client specific problems etc. For example, if the project budget overshoots it is categorized as a project risk.
2. Technical Risks
They are related to the procedures, development, interface, communication, testing, maintenance etc. They can occur due to unclear and missing requirements, frequent changes in the requirements, inadequate technical knowledge, low technical performance etc. For example, if a satellite with distinguished technical features cannot be implemented, it is categorized as a technical risk.
3. Business Risks
They are related to the risks of development of an excellent software which is not yet market fit, thereby leading to loss of money and time. For example, if a mobile phone is developed which is too thick and heavy to carry while traveling, it is categorized as a business risk.
Types of Risk Management Standards and Frameworks
The different types of risk management standards and frameworks are listed below −
- COSO ERM Framework
- ISO 31000
- BS 31000
Advantages of Software Risk Management
The advantages of the software risk management are listed below −
- The software risk management safeguards against probable losses.
- The software risk management works on effective decision making while dealing with risks.
- The software risk management reduces additional costs.
- The software risk management ensures that all the rules, and regulations are adhered to.
- The software risk management prepares for unanticipated problems.
- The software risk management protects the organization’s reputation.
Disadvantages of Software Risk Management
The disadvantages of the software risk management are listed below −
- The software risk management can lead to missed chances in business expansion.
- Software risk management is a costly affair and requires an adequate number of resources.
- The software risk management is complex and not easy to grasp.
- The software risk management can give rise to false sense of security.
- The software risk management is dependent on human decisions.
- The software risk management does not cover all types of complex risks.
Conclusion
This concludes our comprehensive take on the tutorial on Software Risk Management. Weve started with describing what is software risk management, why is software risk management essential, what is the process of the software risk management, what are the different types of risk management standards and frameworks, what are the advantages of software risk management, and what are the disadvantages of software risk management. This equips you with in-depth knowledge of Software Risk Management. It is wise to keep practicing what youve learned and exploring others relevant to Software Testing to deepen your understanding and expand your horizons.