Risk Management for IT Projects (original) (raw)

Risk management is like a form of insurance that is concerned with future events/risks in an IS project, particularly in software development projects, whose exact outcome is unknown, and with how to deal with these uncertainties in advance. Unfortunately, not many IT (Information Technology) developers properly define potential risk events and estimate the probability of the risk event occurring, the possible outcome if it does occur, when it might occur. Risk events can, in fact, affect time, cost, scope, and quality of the project outcomes. Therefore, there is highly important to have risk management mechanism put in place so that the project team can minimize potential risks while maximizing potential opportunities. It is also essential to fully understand the risk management process that consists of risk identification, risk analysis, risk response development, and risk control. In addition, the project team is highly recommended to identify sources of risks for IT projects and principles behind project risk management.