What is risk management in software engineering?
The Oxford English Dictionary defines “risk” as the possibility of loss, injury, or other adverse or unwelcome circumstance. Risk management in software engineering is the process of identifying and managing threats and hazards that can jeopardize the safety or efficacy of software products, software-based services, or software embedded in products such as airplanes, pacemakers, or automobiles.
Main risk types in software development
Uncertainties that can impact the project’s success—scope variations, budget overruns, schedule delays, and more.
Issues that arise during the development process, for instance, code quality, integration issues, or security vulnerabilities.
Inaccurate estimations, end-user engagement, stakeholder expectations, and poor quality are all potential risks to business.
Principles of risk management in software engineering
Global Perspective
Evaluate and consider the system, including its design and implementation, and how risks might interfere with the problems the software seeks to solve.
Forward Thinking
Anticipate potential problems and develop plans proactively to handle them.
Open Communication
Transparency is key to open communication between end users. Identifying and naming potential risks is key to preventing costly problems.
Integrated Management
Including all stakeholders and integrating risk management into the project management process helps to prevent problems from occurring.
Continuous Process
Track and monitor any risks throughout the project lifecycle and manage them as they occur.
The risk management lifecycle
Hazard Analysis
The first step is to evaluate potential conditions that may lead to failure or accidents, group these hazards into scenarios, and identify each scenario’s high-level probability.
Risk Identification
Risk identification consists of a detailed assessment of potential adverse events, their probability of occurrence, and their potential impact, or severity. When hazards have already been identified, this step provides more detailed analysis.
Classification and Assessment
Risks are classified according to industry-specific guidelines that take both probability and severity into account. Classification guidelines vary by industry, and within industries, by regulatory authority. Proper classification helps ensure that products are fit for the market.
Risk Mitigation
Risks are mitigated by identifying controls that can either prevent, reduce the likelihood of, or minimize the severity of their occurrence. For example, to prevent potential injuries from falling out of a moving automobile, automatic door locking may be proposed as a control. Controls may consist of product features, QA automation, performance requirements, inspections, and more.
Risk Reduction Planning
Controls are put into a plan to make them actionable by the organization. The plan identifies the steps the organization will take to implement the controls and assigns them to responsible individuals or teams.
Documentation and Reporting
Dashboards, reports, and other documentation help organizations monitor the fulfillment of risk mitigation tasks, and provide auditable evidence of good risk management practices. In safety-critical industries, risk reporting may be required as a condition for selling into specific markets.
Software risk management solution: Codebeamer
Ensure lifecycle-wide adherence to the highest risk management standards with Codebeamer, a requirements, risk, and test management solution that helps teams integrate risk management with day-to-day activities. Create a robust risk registry to identify, analyze, and mitigate hazards and risks. Comply with ISO 14971, IEC 60812, ISO 26262, IEC 61508, IEC 62304, IEC 60601, DO-178C, and other safety-critical regulations. Document and manage CAPA, FMEA, and other risk-related activities, and respond to regulatory audits with confidence. Benefit from closed-loop integration with the PTC engineering digital thread. Codebeamer helps build a culture of safety and quality throughout your organization.