Software Failure Risk

While organizations face many different types of risks, the increasing reliance on computer systems introduces new elements of risk. Some risks, such as physical destruction of hardware, are managed with the same techniques as other risks in our society. Risks associated with the development and use of software, however, pose some special problems. Software is often unique; little historical information is available to analyze its risk. The complex interrelationships found in software complicate risk measurement. Moreover, the introduction of software can change an organization’s environment, making it difficult to both analyze and manage risk. While there is always the risk that the software will not be developed effectively, there is also the risk that, once developed, the software may not meet the needs of the organization.

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