How Businesses Can Reduce Software Development Risks
Due to the complexity of the software development process, there are always chances for unexpected risks to occur, be it a scope creep, code quality, or security concerns. While you cannot prepare for everything, you can at least be aware of the most common software development risks and take preventative measures in advance. Through careful planning and a security-first development approach, companies can greatly reduce the possibility of risks and protect their digital assets – here is how.
Main types of software development risks
There are several areas for consideration when it comes to evaluating software development risks in the software development process. Below we will look at them in brief, but if you want a more detailed overview, suggest consulting with an experienced software development consultancy company – find here the information about software consulting services.
Operational risks: they usually relate to project management and may include:
- Communication issues (miscommunication, lack of transparency)
- Missed or postponed project deadlines
- High rate of employee turnover
- Shortage of resources
Financial risks: they are usually associated with the project’s budget and funding. It is a common case when the budget was calculated incorrectly or when too many unexpected costs occur. As a result, the client often has to sacrifice the product quality in order to maintain the initially set budget.
Technical risks: might include lack of needed resources, scope creep, incompatibility of services, or relevancy of the selected tech stack. This type is also highly important as it directly impacts the quality of code and the quality of the final product.
Security risks: include lack of needed compliance, vulnerabilities, compromised data, and poor security practices. This is probably the most critical aspect to consider as compromised security leads to massive financial losses and damaged reputation of the company.
External risks: are related to all factors outside of the development environment. Might include:
- Regulatory changes
- Natural disasters
- Fluctuations in user behavior
Main risk response strategies
When talking about software development risks, there are several strategies to follow, depending on your goals and risk severity.
Avoidance
Risk avoidance is the most expensive response strategy and, as the name suggests, its main idea lies in complete avoidance of the potential issue. That means a company eliminates the risk source and chooses an alternative option. This strategy is selected when the impact from the risk is too high. Examples include work with unfamiliar tools and technologies or addition of features that might compromise security.
The benefits of the avoidance strategy are the entire elimination of the risk and reduced stress. The drawbacks, however, might include high costs spent on eliminating the risk and the potential impact on the project.
Mitigation
This strategy focuses on reducing the likelihood or impact of the risk. It is usually selected when the risk cannot be eliminated but can be managed and mitigated to a certain extent. Say, a project cannot function without a certain activity or feature but it also might cause issues – in this case, the company takes extra precautions to minimize the risk but still accepts its possibility.
Mitigation might include activities like team training, use of more reliable resources, and addition of extra time to the project. Note though that the risk might still be present so a company will need to develop a risk management strategy in case it occurs.
Transfer
This strategy means transferring risk management to another party, often outside the company. If, for example, the risk is outside your core competency, you can delegate it to an external vendor. This is a common case for purchasing insurance or asking an IT vendor to handle regulatory compliance.
The main benefit of transfer is reduced stress for a company – but on the other hand, it might be quite expensive and does not eliminate the risk (but minimizes it instead).
Acceptance
Finally, risk acceptance means accepting the risk instead of eliminating or mitigating it. This strategy is common for low-impact risks or for the ones where elimination will be more expensive and time-consuming.
Acceptance doesn’t mean that you just go with the flow and do nothing. Unlike contrary belief, the acceptance strategy requires you to constantly monitor the project and the risk and maintain needed security and quality standards.
Tips on minimizing and managing risks in software development
Now that you are familiar with the main risk types and response strategies, let’s look at the ways you can minimize these issues in your organization, whether you are already in the development stage or just planning to begin the project.
Identify and prioritize
In order to effectively manage something, you need to know it first. This goes for risks in software development too. You should identify and recognize potential bottlenecks and challenges and create a solid response strategy, based on detected risks. After you identify them you will also have to prioritize the risks. This is important because you will choose the response strategy based on the severity of detected risks.
Develop a mitigation strategy
As already mentioned, an effective strategy is integral in the risk management process. It should include a detailed description of the risk and its impact, assets that fall under the damage from the risk, and suggested actions. The strategy should also include key risk indicators that you will monitor to detect the risk at early stages. Also, don’t forget to regularly update the strategy as the software development process is highly flexible and risks might evolve and fluctuate.
Consult with experts
Attract relevant experts to consult you on the project and potential risks and don’t hesitate to ask for expert advice from different team members. Since various specialists work on a software project, they might be able to spot non-obvious or subtle software project risks that are specific to their field of expertise.
Partner with reliable providers
Lastly, it is highly recommended to partner with a reliable and experienced IT provider who will be responsible for project delivery and for software development consulting. We suggest that you look for developers that already have experience with similar projects, meaning they will know the test-and-tried frameworks and approaches and most suitable tech stacks. Also pay attention to the company’s certifications and the way it manages security and quality. For example, ISO 9001 and ISO 27001 certifications indicate that the company follows rigorous security and quality standards and takes risk management seriously.
Summary
When planning a software development project, design of a detailed and robust risk management strategy is crucial. By planning risk management in advance, you significantly minimize the chances of their occurrence, mitigate potential damage, and contribute to releasing high-quality software that performs without unexpected bugs and glitches.
