RISK ASSESSMENT

Risk Assessment for IT projects



Abstract

Conducting Risk Management of IT projects is an ambitious task. ERP projects are complex undertakings for business enterprises, as the associated risk factors include myriad technological, managerial, psychological and sociological aspects. Moreover, such factors are often tightly interconnected and can have indirect effects on projects. Such features make Risk Management more difficult, uncertain and important than in traditional projects, especially in the Assessment stage. The aim of this paper is to propose an innovative technique to support Risk Analysis in order to provide a better, more structured and systematic understanding of the major relations amongst various risk factors, on the one hand, and between risk factors and the specific effects associated with IT projects, on the other. A real case study regarding a multinational company and involving a panel of experts and practitioners is presented to illustrate application of the method.

Table of Contents

Introduction4

Literature Review4

Risk5

Risk Assessment6

Identify Risks7

Analyze Risks8

Risk Description9

Evaluate Risks9

Evaluate Existing Risk Controls10

Benefits of Risk assessment11

Project Risk Assessment framework12

Risk Management in IT projects15

Research Method20

Discussion and analysis21

Case Study of an IT system of a University21

A Case Study of an IT Firm22

Evaluation23

Major steps taken to identify Potential Risk23

Legal obligations and duties embedded to Risk Assessment24

Conclusion24

Recommendations26

References29

Appendix31

Risk Assessment for IT projects

Introduction

Any industry that wants to attain success, it is essential for them to recognize the risks and chances of vulnerability. Therefore in order to evaluate the allied hazards and help in minimizing the risks or bringing those to a bearable level one must initiate recognizing the risks. This is a process in which continuously efforts are done for controlling and minimizing the risks that are cropping up from diverse Hazards. In the previous years the concept of risk assessment was not very clear to a number of companies. With the time improvement made within the working procedures and plans of the companies highlighted the points of risk. Risk assessment and its proper implication was identified by of one the main market leaders. These companies became market leaders because they of the identification and measuring of risks. In the present era up gradation within the process of risk assessment according to the industry criteria is done. Different companies work differently on the risk assessment taking their environment and company policies into considerations.

Literature Review

The existing literature on risk management is extensive. Boehm identified risk management as a basic discipline for software development projects. Hussey described new and amplified risks incurred by globally distributed projects, which will drive the development of new tools and methodologies to mitigate those risks. Hillegersberg and Herrera reviewed existing tools and methodologies to support global software development projects and identified the most important requirements for these tools. They recommend that global software development projects must rely on decentralized control mechanisms to provide adequate support for the remote coordination among sites.

A tool to enable project risk monitoring based on software source code analysis. Source code metrics are collected and analyzed to provide an overview of the software development status. Alberts defines a method to evaluate project risks based on ...