RISK MANAGEMENT in SOFTWARE PROJECTS?

Software development is a highly complex and capricious activity which is associated with high risks. As more and more organizations are investing in substantial resources, risk management becomes crucial. We can define risk Management as a systematic process for identifying, analyzing and controlling risks in projects or organizations. The positive impact of accepting risk management strategies on projects has led many software development organizations to appreciate its important role in the quest of cost reduction; schedule overruns decrease and improved performance. The present paper tries to answer the questions like‖ what are the most frequently used risk management approaches? ―,‖ What is the process of risk management? ‖How to apply risk management in practice?‖ The paper discusses about the risk management approach: risk-list, risk-action list, risk-strategy model, and risk-strategy analysis. The paper estimates the project risk with the estimation of the impact of the Residual Performance Risk on the project Performance.