Can software risk management improve system development: an exploratory study

Software risk management can be defined as an attempt to formalise risk oriented correlates of development success into a readily applicable set of principles and practices. Earlier research suggests that it can reduce the likelihood of a system failure. Using a survey instrument we investigate this claim further. The investigation addresses the following questions: (1) which characteristics of risk management practices; and (2) which other environmental and process factors (such as development methods, manager's experience) relate to improved performance in managing software risks? Our findings support in general the claim that the use of risk management methods improves system development performance. Yet, little support was found for the claim that specific risk management methods are instrumental in attacking specific software risks. Overall, risks are better managed with combined measures of having experienced project managers, selecting a correct project size, and investing in and obtaining experience in risk management deliberations.