Merry King

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In today's commercial market environment, competition and globalization has increased dramatically. The excessive cost arising from inefficient processes and operation have been considered to be the major causes of losses to the organizations over the past several years. Several organizations, particularly larger companies, recognize the need to hedge and manage against undesired risks. Software development is presently one of the most common risk issues. Adler et.al., (1998) reveal that the software development project includes risk events that can cause damage to improving processes. Moreover, it would be an error of judgment to overlook the significant risk areas of the project as this will impair decision quality and impact massive product changes. Raz et.al., (2002) describe project risks as adverse events that can cause delays, surplus expenditure and dissatisfaction with the project outcome. Apart from this, each project varies in size, duration, uncertainty, complexity, objectives, limitations and others. In an effort to enhance the quality of procedure and minimize the risk profile, better execution and implementation will also reduce undesired performance. Adler et.al., (1998) note that there is a tendency to claim that Cleanroom approach would be more appropriate to improve the overall trustworthiness and quality assurance issues. This essay will first describe how the effects of software risks have a direct impact on day-to-day business activities. It will then define how software risk management plays an important role in coping with the project risks. In the second section, it will introduce two software risk management models namely the Software Risk Evaluation model (SRE) and Cleanroom Softw... ... middle of paper ... ...able for software engineers to monitor quality control that can be scientifically verified in a formal statistical diagram. In a study, Raz et.al., (2002) point out that there is a continuing requirement for an adaptation from the different risk management techniques to the different kind of projects and the improvement of the specific devices to mitigate risk from several different type of projects. In essence, it could be said that many organizations increasingly recognize the importance of software risk management to ensure accessibility of the overall information of the project risks. What is more, Ward (2005) concludes that a company which constantly develops risk management tends to gain a competitive advantage, and it appears probable that a well-defined software risk management practice can assist to increase the company's competitive advantages as well.

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