Project Risk Management Using the Project Risk FMEA

numerous types of development projects, Adams reported similar numbers, where only about one-fourth of all projects entering development become a market success (2004). Datta and Mukerjee (2001) stated that “successful project completion depends to a great extent on the early identifi cation of immediate risks.” Jiang et al. (2002), using factor analysis, confi rmed their hypothesis that risks adversely impact project success for software development. Certainly there are a number of factors that determine whether a project will be a success, but it seems likely that failing to perform adequate risk management will increase the possibility of failure. The old axiom, “failing to plan is planning to fail,” appears to apply to risks. Having an effective method to plan for and manage project risks that is easy for the project team to understand, use, and apply is critical. As projects increase in complexity and size, taking a multidisciplinary approach to project management requires giving proper attention to risk management. This article proposes a simple risk management tool that has been shown to be benefi cial to managing project risks and improving project success.