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Project Risk


What is meant by the term 'Project risk'?

Any likelihood or uncertain & unwanted events and actions, which may impact the progress of a project in a negative way comes under the category of project risk.

Some of the common examples of project risk are

  • Non-availability of the test environment.
  • Delay in providing test items to the testing team.
  • Lagging in fixing defects & issues by the development.
  • Changes brought in SRS or BRS, which demands alteration in the existing test cases to fulfil the changing requirements and specifications.
  • Lack of skill and resources such as limited staff.

Types of Project Risk

Mainly, project risk is categorized under three classes.

Organization Risk

These are the risk, associated with the management of the organization. Basically, organization risk refers to the shortage of human resources or any issue in respect to the testing team.

Organization risk may be identified by

  • Observing and analyzing the structure of the team involved in the project such as test team.
  • Assessing skills and traits of each team member.
  • Assessing the available resources, such as staff, in comparison to what is required to finish the project within the specified deadlines.

Technical Risk

Likelihood of the faults or any sort of loss, arising due to the technical loopholes or involving technical angle of the project is refer to technical risk such as

  • Difficulty, in integrating the modules of the system.
  • Improper designing and implementation of the test environment, resulting in inappropriate execution of the test cases.
  • Larger complexity associated with the software product.

Business Risk

Any external force, event, action or condition, outside the project boundary either from the organization or from the client side, impacting the progress of a project comes under the class of business risk.

Usually, these types of risks are dealt with the project manager or the test manager.

How to manage the project risk?

Basically, these types of risks may be deal in the following manner:

Mitigate

Taking prior action or implementing strategies & methods to reduce the occurrence & impact of the risk. It usually involves three steps:

  • Identifying and assessing the risks.
  • Managing and prioritizing the test cases based on the risk assessment.
  • Implementing corrective measures to reduce the risk impact.

Contingency

Equipping with a plan to lessen the chances of occurrence of the risk.

Transfer

Persuading any other member of the team or the major stakeholders to reduce the probability of risk occurrence or may ready to accept the impact.

Ignore

A better option is to ignore the risk, if nothing much could be done with it or if it is of low severity.