Principles of Risk Management and Paradigm

Risk Management is an approach that helps in managing and making the best use of the available resources. A computer code project may be laid low with an outsized sort of risk so as to be ready to consistently establish the necessary risks that could have an effect on a computer code project.

It is necessary to group risks into completely different categories. The project manager will then examine the risks from every category square measure relevant to the project.

What are the Principles of Risk Management?

1. Global Perspective: Larger system definitions, design, and implementation are considered. The opportunity and the impact that the risk is going to have is looked. View software risks in the context of a system and the business problem planned to be solved.
2. Forward Looking View: Looking at the possible uncertainties that might be dragged. Possible solutions to the risks that might occur in the future are considered. Think about the risks that may occur in the future and create future plans for managing future events.
3. Open Communication: This enables the free flow of communication between the end users and the development team so that they can clarify the risks. Encourage all the stakeholders and users to suggest risks at any time.
4. Integrated Management: Risk management is made an integral part of the project management during this phase. A consideration of risk should be integrated into the software process.
5. Continuous Process: Risks are tracked continuously throughout the risk management paradigm during this phase. Modify the identified risk than more information is known and add new risks as better insight is achieved.
6. Maintaining a global perspective: Risks should be viewed about software considering all the aspects of constraints and uncertainties on business should be considered.
7. Having a forward-looking view- Risks that may occur in the future should be assumed.
8. Encouraging communication: The experience of risks stated by project management team members or project managers should be considered.
9. Developing a shared software vision: Both project management team and the senior management should be able to view the software and its risks with a common objective such as developing quality software and preventing loss .By following this approach better risk identification and assessment is achieved.
10. Encouraging teamwork: The skills and knowledge of every person involved in risk management should be combined when risk management activities are performed.

What is the Risk Management Paradigm?

The Risk management paradigm included both the risk characterization and risk management. Risk characterization is made up of four main steps which are:

1. Hazard identification
2. Dose-response assessment
3. Exposure assessment
4. Risk characterization

Phases of Risk Management Paradigm

1. Identify: Risks are identified before major problem is created. If the risks are identified before they create a major problem then there might not be more difficulty in controlling the risks.
2. Analyze: Deep analysis of nature, behavior and type of risk and collect information about it. It is required for the purpose of the determination of the knowledge about the risk.
3. Plan: Convert the plan into actions and implementation. This phase includes the actions and implementation of the planning that was done before. After the risk detection plans are made and executed.
4. Track: Necessary actions are monitored. Necessary action means the required work for the removal and minimization of the risk detected.
5. Control: Correct the deviation and make necessary changes. Put the right thing in the right place and the required field will changed according to the changes required.
6. Communicate: Discussion about the current risks and the future risks and their management. Make a productive discussion between the developer and tester on the risks found in the software.

Conclusion

Risk management in software project involves a principles like global perspective, forward looking view, open communication, integrated management and continuous tracking. and we learned about the risk management paradigm in which different steps are included.