An Assessment of risk response strategies practiced in software projects

  • Vanita Bhoola S. P. Jain Institute of Management & Research
  • S B Hiremath National Institute of Industrial Engineering
  • Debasis Mallik S. P. Jain Institute of Management & Research
Keywords: risk management, risk response strategies, project management, software project risks, SURE model

Abstract

Risk management and success in projects are highly intertwined – better approaches to project risk management tend to increase chances of project success in terms of achieving scope & quality, schedule and cost targets. The process of responding to risk factors during a project’s life cycle is a crucial aspect of risk management referred to as risk response strategies, in this paper. The current research explores the status of risk response strategies applied in the software development projects in India. India provides a young IT-savvy English-speaking population, which is also cost effective. Other than the workforce, the environment for implementation of software projects in India is different from the matured economies. Risk management process is a commonly discussed theme, though its implementation in practice has a huge scope for improvement in India. The paper talks about four fundamental treatments to risk response – Avoidance, Transference, Mitigation and Acceptance (ATMA). From a primary data of 302 project managers, the paper attempts to address the risk response factors that lead to successful achievement of project scope & quality, schedule and cost targets, by using a series of regressions followed with Seemingly Unrelated Regression Equations (SURE) modelling. Mitigation emerged as the most significant risk response strategy to achieve project targets. Acceptance, transference, and avoidance of risk were mostly manifested in the forms of transparency in communication across stakeholders, careful study of the nature of risks and close coordination between project team, customers/end-users and top management.

Author Biographies

Vanita Bhoola, S. P. Jain Institute of Management & Research
Assistant Professor, Head - Center for Project Management
S B Hiremath, National Institute of Industrial Engineering
Professor, Information Management
Debasis Mallik, S. P. Jain Institute of Management & Research
Associate Professor, Head - Post Graduate Certificate of International Management
Published
2014-11-01
How to Cite
Bhoola, V., Hiremath, S. B., & Mallik, D. (2014). An Assessment of risk response strategies practiced in software projects. Australasian Journal of Information Systems, 18(3). https://doi.org/10.3127/ajis.v18i3.923