Software risk management

Although software risk management is not yet a fully articulated discipline, its contributions to date have helped many software projects avoid devastating pitfalls and reach successful conclusions. The techniques of risk assessment and risk control outlined here stimulate a "no surprises" approach to software management which improves project management visibility and control, and significantly reduces software rework. (Rework costs generally comprise 40–50% of overall software development costs; typically, 80% of the rework costs are caused by the highest-risk 20% of the software problems encountered.) And finally, risk management provides a useful framework for determining which software V&V activities to pursue, and at what level of effort.