Discuss different types of risks which are likely to arise in software projects. Briefly explain risk analysis stage during risk management process.

There are mainly three categories of risks that are likely to arise in software projects. They are described below:-:

1) Product Risk: Product risks are the risks that influence the quality attributes as well as the performance of software being developed. Example: failure of purchase component to perform as expected

2) Project Risk: Project risks are the risks that influence the schedule of a software project and that if occur delay the development process. Example: staff turnover, hardware unavailability, etc.

3) Business Risk: Business risk is a risk that affects the organization's business that is developing or procuring the software. it could be anything that has the potential of threatening the generation of profits at the predetermined target levels. Business risks could be quite dangerous for the long-term sustainability of the business. Example: Technology change, Product completion, etc.

Risk Analysis Stage

- Risk Analysis in project management is a sequence of processes to identify the factors that may affect a project's success. These processes include risk identification, analysis of risks, risk management and control, etc. Proper risk analysis helps to control possible future events that may harm the overall project. It is more of a pro-active than a reactive process.

-  Risk Analysis is a process that helps you identify and manage potential problems that could undermine key business initiatives or projects.

- To carry out a Risk Analysis, you must first identify the possible threats that you face, and then estimate the likelihood that these threats will materialize.

- Risk Analysis can be complex, as you'll need to draw on detailed information such as project plans, financial data, security protocols, marketing forecasts, and other relevant information. However, it's an essential planning tool and one that could save time, money, and reputation.

When to Use Risk Analysis

Risk analysis is useful in many situations:

• When you're planning projects, to help you anticipate and neutralize possible problems.
• When you're deciding whether or not to move forward with a project.
• When you're improving safety and managing potential risks in the workplace.
• When you're preparing for events such as equipment or technology failure, theft, staff sickness, or natural disasters.
• When you're planning for changes in your environment, such as new competitors coming into the market, or changes to government policy.

Key Points

• Risk Analysis is a proven way of identifying and assessing factors that could negatively affect the success of a business or project. It allows you to examine the risks that you or your organization face, and helps you decide whether or not to move forward with a decision.
• You do a Risk Analysis by identify threats, and estimating the likelihood of those threats being realized.
• Once you've worked out the value of the risks you face, you can start looking at ways to manage them effectively. This may include choosing to avoid the risk, sharing it, or accepting it while reducing its impact.
• It's essential that you're thorough when you're working through your Risk Analysis, and that you're aware of all of the possible impacts of the risks revealed. This includes being mindful of costs, ethics, and people's safety.