qr code reader java app download Managing the Program Risks in Software

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Managing the Program Risks
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A risk is an uncertain event or condition that may affect the project in a positive way or, more often, in a negative way Programs begin with a classic business risk: the investment of monies into a program There is a risk for the organization that the monies
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sunk into the program may never be recouped There s a risk that the program may fail and all of the investment could be lost The flip side of this risk, however, is the reward that the program will receive by accepting the risk For any identified risk there should be a reward for accepting the risk; the reward should be in relation to the risk that s been accepted Of course some risks are worth taking, while other risks are best avoided This program management knowledge area has two processes; Figure 10-9 depicts the two risk processes These risk management processes are iterative throughout the program life cycle The program manager and the program management team are constantly on the lookout for new risks, risks that may not have been identified yet, and potential solutions for risk events These risk processes are revisited whenever there are changes to the program scope, cost, schedule, or contracts Changes to the these four areas of the program almost always introduce new risks events that must be identified, evaluated, planned for, and then managed A failure to consistently examine the program for new risks events can quickly lead to the program s demise
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The risk management planning process documents and defines how the risk management activities for the program and the constituent projects will happen within the program This process begins with the identification of the program risks, the risks characteristics, and what the potential responses for the identified risks may be This process happens over and over throughout the program so learn to love it Once the risks have been identified, they ll move into qualitative analysis You could say that qualitative analysis qualifies the risks for further analysis This quick base analysis will quickly judge the probability, impact, and overall score for each risk event Qualitative analysis is not a very reliable approach to scoring risk events, but rather a foundation to determine a consensus on which risk events should go on to additional study and which risks events should just be monitored The risk events that are deemed quite serious go onto quantitative analysis, where the goal is to quantify the risk events This approach is much more in-depth than the qualitative analysis and takes much longer to complete Quantitative analysis usually relies on a risk probability-impact matrix to gauge the risk event value and to build the program s contingency reserve The contingency reserve is a portion of the program s budget reserved to offset risk events
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Figure 10-9 There are two processes in the risk management knowledge area
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10: Program Knowledge Areas
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The final portion of the risk management and planning process is the creation of risk responses You may recall that there are seven risk responses: Acceptance Avoidance Used for both positive and negative risk events Used for negative risk events; the risk is avoided
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Mitigation Used for negative risk events; the impact and/or probability of the risk event is reduced Transference Used for negative risk events; the risk transferred to a third party, usually for a contracted fee Sharing Used for positive risk events; the event is shared with another party PART III Enhancing Used for positive risk events; the conditions surrounding the positive risk event are enhanced to try to make the positive risk event happen Exploiting Used for positive risk events; the positive risk event is going to happen, so the organization exploits the event for its benefit This process is completed throughout the program, including the analysis of interproject risks The goal is to identify root causes of risks, spot trends, and address the core issue of risks with the most appropriate risk response Sometimes risk events within the program components may need to be escalated to the program level to find the best solution or response The program management team must encourage the component projects to consistently address the risks within their projects
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