Industrial Opinion on the Effectiveness of Risk Management Methods

Little is known about the industrial opinion of the effectiveness of risk management. In this paper, we report on this opinion as expressed by five software organizations. According to these organizations, risk management should be a driving wheel of all projects and it should help the organizations dare take big risks in projects that might lead to high opportunities. The amount of resources assigned to risk management should depend on parameters such as product criticality, project size and project type. Finally, the organizations studied could not provide any concrete suggestions for how to evaluate risk effectiveness. All of them do risk management evaluations in a highly subjective manner.