Risk is an expectation of loss, a potential problem that may or may not occur in the future. It is generally caused due to lack of information, control or time.

A possibility of suffering from loss in software development process is called a software risk. Loss can be anything, increase in production cost, development of poor quality software, not being able to complete the project on time.

Software risk exists because the future is uncertain and there are many known and unknown things that cannot be incorporated in the project plan.

Categories of Risk:-

1. Project Risks: Risks which will affect the project schedule or resources. For example, stuff turnover that is an experience team member of a project left the organization.

Project Risks are usually managed in an Excel Sheet (or Google Docs Spreadsheet) where we list and manage all the risks for the project.

For each risk we collect and manage the following information:

1. Risk Name & Description.

2. Risk Index (we use this field in order to sort our list) – calculated by multiplying its probability by its consequence.

3. Risk owner

4. Date of relevance – when does the risk starts been relevant and prevention actions can start taking place.

5. Prevention Actions – how to avoid this risk.

6. Contingency Plans – what do we do if the risk materializes.

7. Product Risks: Risks that affect the quality or performance of the software being developed. For example a component isn't performing as expected.

As testers one of our tasks is to manage Product Risks.

We are paid (at least in part) to be aware of all Product Risks, to make sure the rest of the project team is also aware of them, and to coordinate this information with Project Management to make sure our schedules are taking these risks into account.

In addition, we are expected to plan our testing strategy based on these risk, scheduling more tests (and earlier tests) on areas with higher risks in order to find these issues faster.

Examples of Product Risks are:

Complex features affecting multiple areas of the existing product, like an upgrade/migration of the system.

New Technologies used in the product; for example a new DB server, a new programming language, a new integration, etc.

1. Business Risks: Risks that affect the organization developing or procuring the software. For example, a competitor is developing a similar product that will challenge the product being developed.