The success of software industry depends on efficient techniques used by skilled resources in software development process. Risk is a chance for the occurrence of an unlikely event, which would result in highly unacceptable consequences. Risk management strategy, the process of identifying and managing the risk, can mitigate or eliminate the risk that relates to business practices, failures in projects or the security, and storage of data and records. The success of the project depends on efficient management technique implemented by the software industry in risk management. This paper focuses on the classification of various types of risks and the execution strategies followed in IT industries for effective risk management during the software development process using the most influencing parameters such as Cost, Time, People, and Process (CTP2). This awareness throws light in comprehending the role of the aforementioned parameters for effective software development process. The analysis infers that the occurrence of risk is always high irrespective of long term or short term project. However, the impact of risk on long term projects is higher than compared to the impact of risk on short term projects which is validated against CTP2.
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