INF3708 – Software Project Management
Chapter 7
Risk Management
7.2 Risk
PK-BOK defines risk as ‘an uncertain event or condition that, if it occurs, has a positive or negative
effect on a project’s objective’.
The key elements of a risk follow.
It relates to the future – the future is inherently uncertain.
It involves cause and effect – For example, a ‘cost over-run’ might be identified as a risk, but
‘cost over-run’ describes some damage, but does not say what cause.
7.3 Categories of risk
Project risks are those that could prevent the achievement of the objectives given to the project
manager and the project team.
Risks have been categorized in other ways. Kalle Lyytinen and his colleagues, for instance, have
proposed a sociotechnical model of risk, a diagrammatic representation of which appears in Figure
7.2.
The box labelled ‘Actors’ refers to all the people involved in the development of the application in
question. A typical risk in this area is that high staff turnover leads to expertise of value to the
project being lost.
In Figure 7.2, the box labelled ‘Technology’ encompasses both the technology used to implement
the application and that embedded in the delivery products.
‘Structure’ describes the management structures and systems, including those affecting planning
and control.
‘Tasks’ relates to the work planned.
Actors
Structure Technology
Tasks
Figure 7.2 The Lyytinen-Mathiassen-Ropponen risk framework
Chapter 7
Risk Management
7.2 Risk
PK-BOK defines risk as ‘an uncertain event or condition that, if it occurs, has a positive or negative
effect on a project’s objective’.
The key elements of a risk follow.
It relates to the future – the future is inherently uncertain.
It involves cause and effect – For example, a ‘cost over-run’ might be identified as a risk, but
‘cost over-run’ describes some damage, but does not say what cause.
7.3 Categories of risk
Project risks are those that could prevent the achievement of the objectives given to the project
manager and the project team.
Risks have been categorized in other ways. Kalle Lyytinen and his colleagues, for instance, have
proposed a sociotechnical model of risk, a diagrammatic representation of which appears in Figure
7.2.
The box labelled ‘Actors’ refers to all the people involved in the development of the application in
question. A typical risk in this area is that high staff turnover leads to expertise of value to the
project being lost.
In Figure 7.2, the box labelled ‘Technology’ encompasses both the technology used to implement
the application and that embedded in the delivery products.
‘Structure’ describes the management structures and systems, including those affecting planning
and control.
‘Tasks’ relates to the work planned.
Actors
Structure Technology
Tasks
Figure 7.2 The Lyytinen-Mathiassen-Ropponen risk framework
