A framework for identifying software project risks

Reviewer: Sumit Sircar

Software project failures are a critically important problem in industry. Unfortunately, the authors do not clarify what they mean by “failure.” Does it simply refer to canceled software projects, or does it also include projects that do not deliver what the users who commissioned them asked for__?__ Some people may be tempted to define failure as projects that are delivered over budget and after the promised delivery date, but this definition would include most computer systems! The authors conducted an international Delphi study of 40 managers in the US, Finland, and Hong Kong. The most important risk factors in all three locations were remarkably consistent: lack of top management commitment to the project; failure to gain user commitment; and misunderstanding the requirements. The approach uses a 2×2 matrix framework for viewing all risks; that is, it considers four risk categories. This allows all of the risk factors to be categorized according to two factors—perceived level of control <__?__Pub Caret>and perceived relative importance. The authors also provide some strategies for reducing the risk, even though many of the highest risks are in a category considered beyond the manager's control. Interestingly, only one of the final risk factors had to do with the technology itself. Although the topic is not explicitly addressed, the study also provides some insight into the skills project managers need in order to reduce the risk of failure.