Types of Risks in Software Projects

Are you developing any Test plan or test strategy for your project? Have you addressed all risks properly in your test plan or test strategy?

As testing is the last part of the project, it’s always under pressure and time constraint. To save time and money you should be able to prioritize your testing work. How will prioritize testing work? For this you should be able to judge more important and less important testing work. How will you decide which work is more or less important? Here comes need of risk-based testing.

What is Risk?
“Risk are future uncertain events with a probability of occurrence and a potential for loss”

Risk identification and management are the main concerns in every software project. Effective analysis of software risks will help to effective planning and assignments of work.

In this article I will cover what are the “types of risks”. In next articles I will try to focus on risk identification, risk management and mitigation.

Risks are identified, classified and managed before actual execution of program. These risks are classified in different categories.

Categories of risks:

Schedule Risk:
Project schedule get slip when project tasks and schedule release risks are not addressed properly.
Schedule risks mainly affect on project and finally on company economy and may lead to project failure.
Schedules often slip due to following reasons:

  • Wrong time estimation
  •  Resources are not tracked properly. All resources like staff, systems, skills of individuals etc.
  •  Failure to identify complex functionalities and time required to develop those functionalities.
  •  Unexpected project scope expansions.

Budget Risk:

  •  Wrong budget estimation.
  •  Cost overruns
  •  Project scope expansion

Operational Risks:
Risks of loss due to improper process implementation, failed system or some external events risks.
Causes of Operational risks:

  •  Failure to address priority conflicts
  •  Failure to resolve the responsibilities
  •  Insufficient resources
  •  No proper subject training
  •  No resource planning
  •  No communication in team.

Technical risks:
Technical risks generally leads to failure of functionality and performance.
Causes of technical risks are:

  •  Continuous changing requirements
  •  No advanced technology available or the existing technology is in initial stages.
  •  Product is complex to implement.
  •  Difficult project modules integration.

Programmatic Risks:
These are the external risks beyond the operational limits. These are all uncertain risks are outside the control of the program.
These external events can be:

  •   Running out of fund.
  •   Market development
  •   Changing customer product strategy and priority
  •   Government rule changes.

These are all common categories in which software project risks can be classified. I will cover in detail “How to identify and manage risks” in next article.




Related Posts:

  • Priority and Severity
  • Software testing questions and answers
  • Will automated testing tools make testing easier?
  • Why does Software have bugs?
  • What is client-server and web based testing and how to test these applications
  • 34 comments ↓

    #1 vami k on 12.18.07 at 6:04 am

    Should we consider and risks as problems while analsing risks?
    More on how to address the risks associsted with resources, mainly human resources like if a tester is leaving the team in between then how to analyse the effect of this on project performance and how to minimise such risks?

    #2 Veronica on 12.19.07 at 8:06 am

    Hi, my name’s Veronica.I’m beginner in the knowledge of software testing. May I talk with someone, who can help me understand this process. My english is not so good, but I undestand what you’ll can to say. I read many information about sofware testing, but I nor undestand the essential of this. May I talk with somebody by ICQ who know how it work, who can give me the sample which I try to do the test. In theory I undestand , but in practical I’m zero.
    Please help me somebody!
    Send your IQ address on my e-mail.
    Thanck you very much.

    #3 Veronica on 12.19.07 at 8:09 am

    my e-mail address: vercic@gmail.com

    #4 hari on 12.20.07 at 11:43 am

    Hi,
    Is these risks taken care by testers.What are responsibilities if we found such type of risks.Mainly Operational risks.

    #5 Gatari Mishra on 12.21.07 at 12:10 pm

    can some body please give the best bug report formart..
    or else give some tips to prepare a effective bug report.

    regards

    gayatri

    #6 Mruga on 12.27.07 at 7:14 am

    Hi,

    I have a question that how the testers can incorporate these risks in their testing cycle?Is this only be used at the time of creting Test Plan?

    #7 rahul on 12.29.07 at 7:36 am

    Hi,

    Can you elaborate on Programmatic Risks,
    Does it depends on the coding? you have not mentioned anything about coding…..

    #8 chanchal on 01.02.08 at 12:22 pm

    I am a fresher I am going to complete my diploma in IT
    in feb month .I have good knowledge of manual testing as well as automated testing such as winrunner,testdirector.load runner and QTP.i have worked in live project. so Ple advice me how to get into company as fresher my Ph no is 9902280190 .

    #9 Vijay on 01.02.08 at 2:36 pm

    @Vami - Problem is different than risk. Risks are future uncertain events those may or may not occur. Problems are events that are actually occurred.
    Handling the resource risks is fairly depend on management. Project management should have contingency plan if any human resource is not available in between the project. Such contingency plan include backup resources, training approach to new resources. Also fair work distribution and involvement of each project member in every project activity can minimize resource risks.

    @ Hari and Mruga- Ideally each and every risk should be identified in advance and contingency plan should be available in project risk management strategy. Individuals may be testers related to each risks are responsible for implementation of risk response action based on risk occurrence.

    @Rahul - Risks related to coding are Technical risks and not come under Programmatic Risks.

    Guys, in coming post I will cover risk identification, Analysis and management in detail. So all your queries will get addressed in detail.

    #10 dhana on 01.10.08 at 11:15 am

    plz anybody send me manual testcase documents.

    #11 Priya.K on 01.11.08 at 5:06 am

    I need different types of test cases writing.
    for Eg: for login screen wht are the types or in what all ways we can write.

    #12 Thulasi Suresh on 01.11.08 at 8:42 am

    @Vijay
    I agree what you stated is right. QA is nothing but Planned and systematic set of activities. Before risk occurs we need to state that what are the possible ways it may occur and also the preventive action plan.

    @Priya.K (Login Screen)
    1. As of Unit Testing - Validation of Username and Password
    2. Integration - On click of Login whether server validates the authenticated user or not
    3. System - Recovery Testing, Performance Testing, Regression, Security Testing, Compatability Testing (OS and Browsers).

    #13 NadeemAhmd Junaidi on 01.19.08 at 5:18 pm

    How to begin in an interview wen a question is posed explain ur current project?wat n all things to b covered while answerin for this wat not to mention to play safer

    #14 motiranjan on 01.21.08 at 9:43 am

    hai
    can u give some information about test data and how to generate test data

    #15 Prasad on 01.24.08 at 5:34 pm

    According to adhoc testing, when we test without specifications, if any changes occurs in ur build… whether this test case should be added in the specification or not…

    Can u reply this question…

    #16 Seethapathik on 02.01.08 at 11:03 am

    I want to know the terms 1. Test Strategy,Test case,Use case,Test plan,Test Suite?

    #17 Vishal on 02.20.08 at 9:09 am

    I am working as Software Test Engg. Till now I have not appeared for any of the Testing certification Exam. So can you please suggest me for which exam Should I appear first…..?

    #18 Kiran kumar on 03.25.08 at 5:16 am

    Hai Everybody…i am silent member to this community….i am a entry level testing professional ….can anyone suggest good testing books for basic software testing ?

    #19 lalit on 03.28.08 at 7:28 am

    hi vijay or anyone can you mail me the “How to identify and manage risks” material to lalitd@indiatimes.com its urgent

    #20 nandini on 04.11.08 at 9:46 am

    could u tel me the how to design and write the testcases.

    #21 salim on 04.17.08 at 10:47 am

    hi first of all you should write the fields like testid,test description,test steps,expected result and actual result,test status for further contact my gmail jobssalim@gmail.com

    #22 Munikrishna on 04.17.08 at 1:20 pm

    I am working as a Soft Ware Test Engineer .Anybody can tell How to prepare Test plan

    #23 Munikrishna on 04.17.08 at 1:21 pm

    I am working as a Soft Ware Test Engineer.Anybody can tell how to prepare Test Plan

    #24 Ekta on 05.02.08 at 9:14 pm

    I am attending interviews to get job as software tester. For short duration projects companies expect me to have full knowledge of TEST PLAN,TEST METHODOLGY , TEST STARTEGY and TEST DELIVERABLE.Many times i face problem to answer these questions properly.Can anybody tell me how to prepare test plan. Please help me with these questions.

    #25 madhav on 05.05.08 at 5:15 am

    what is the difference between version and Build?

    #26 madhav on 05.05.08 at 5:33 am

    Build means which is released to testing team for testing.
    whereas version means which is released to end users for use or may be for acceptance testing.
    correct me if am wrong.

    #27 Tiger2K on 05.05.08 at 6:32 am

    BUID is process of converting sourece code in to executable code (.exe) and giving it to the testers for testing.
    Version is number of release made during the life cycle of a product.

    #28 madhav on 05.05.08 at 6:53 am

    thank a lot Tiger

    #29 vinodini on 05.28.08 at 4:52 am

    HI,

    Could please let me what kind of Risks/Contingencies are expected to be written in a test plan.

    #30 Rajatha on 05.29.08 at 7:08 am

    @vinodini,
    i will one u one ex for this.
    assume there r 3 modules ‘A’,'B’,and ‘C’ and 3 Test Engineers 1, 2, 3.
    1. Assumption: every person who all involved in project will remain till the end of product life cycle.

    2. Risk: some person may quit the job in the middle, who has been assigned to handle module ‘B’.

    3. contingency plan :
    person1 : primary module -> ‘A’
    secondary module ->’B’
    person2 : primary module -> ‘B’
    secondary module ->’C’
    person3 : primary module -> ‘C’
    secondary module ->’A’

    so in this ex, person2 has left job, so person1 has to continue with this module. so v can save time of training new engineer.

    suggestions would be accepted.
    thanx,

    #31 Suresh Balakrishnan on 06.04.08 at 12:39 pm

    Hi Vinodini,

    This is Suresh Working as a Test Engineer. I have mentioned about Risk and Contingency as follows:

    Risks and Contingencies
    Specify any potential risks and plans for mitigating, addressing and/or resolving those risks.

    Thanks,
    Suresh
    bsuresh7282@gmail.com

    #32 Chhaya chaudhari on 06.16.08 at 5:09 am

    hi
    can u tell me how to write test strategy?

    #33 Manya on 07.08.08 at 5:15 am

    Hi , I’m currently doing my master’s thesis on risk based testing . I was wondering if anybody in this group has anything to say about “Risk Based Test Prioritization in Agile processes” .. I haven’t personally worked in an agile environment , so , do you think if risk based priotization of testcases in an agile process maes any sense at all? or are is it a contradiction of terms

    #34 Shivakumar on 08.12.08 at 9:22 am

    @manya –Hi agile testing is development driven by testing … Risk based prioritization would be for any testing process and it will also be in agile testing

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