An Analysis on Risk Management and Risk in the Software Projects

Introduction

Software projects are considered to be one of the high-risk activities which generates different outcomes of different performance (Charette et al., 2005) According to the survey, it was found from the report of the industry that only quarter of the software projects are successful and rest around billions of dollars are lost annually some due to the project failure or result failure. The commitment of the risk management to the commercial software industry is that it will make the quality of the software product best and delivery on time. Risk management can give benefits to wide range of projects and organization by:

• 1.

  Identification of favorable alternative course of action

• 2.

  Higher success rate

• 3.

  Cost efficient

• 4.

  Higher efficiency rate

This chapter makes two contributions, first is on review, analysis on software project risk, risk management and second on the experimental study of risk management practices which is being assessed against the prescriptions in literature. After the thorough analysis, result and conclusion can be drawn for the future research work.

The chapter consists of the following contents: literature; findings; comparison on the practices which are prescribed; limitations; future research work and conclusion.

Literature Review

In this section there is a study of the importance of risk and risk management, limitations in the risk, concept of risk in the project and finally the limitation are being discussed in comparison based on the practice.