Risk Management Framework: Identifying and Mitigating Business Risks

Despite significant efforts to ensure the success of software projects, the risk of failure remains high. Although these risks cannot be entirely eliminated, they can be effectively managed through proper risk management techniques throughout the software development lifecycle. This study aims to classify and identify the most effective risk management techniques using factor analysis. We surveyed software project managers, presenting them with thirty different risk management techniques, which they frequently used and deemed effective. We categorized these techniques into three main components: Planning and Requirement Techniques, Communication Techniques, and Models and Tools. The study's findings will be applied to a real-world software project to verify their effectiveness in mitigating risks. A novel multi-dimensional weighting approach is proposed to highlight the relationships between risks and actions, selecting best-fit profiles for both business and risk via an `if-the-shoe-fits' process, and determining precise mitigating actions through score tolerance bands. The successful identification and implementation of these techniques are expected to significantly improve the likelihood of mitigating risks in software projects.