Project risks They threaten the project plan If they become real, it is likely that the project schedule will slip and that costs will increase Technical risks They threaten the quality and timeliness of the software to be produced If they become real, implementation may become difficult or impossible Business risks They threaten the feasibility of the software to be built If they become real, they threaten the project or the product Sub-categories of Business risks Market risk Building an excellent product or system that no one really wants Strategic risk Building a product that no longer fits into the overall business strategy for the company Sales risk Building a product that the sales force doesn't understand how to sell Management risk Losing the support of senior management due to a change in focus or a change in people Budget risk Losing budgetary or personnel commitment Reactive risk strategies "Don't worry, I will think of something“. The majority of software teams and managers rely on this approach Nothing is done about risks until something goes wrong The team then flies into action in an attempt to correct the problem rapidly (fire fighting) Crisis management is the choice of management techniques Proactive risk strategies Steps for risk management are followed Primary objective is to avoid risk and to have an emergency plan in place to handle unavoidable risks in a controlled and effective manner
