Software Development Project Risk Management: A New Conceptual Framework

The frequently observed positive impact of adopting risk management strategies on projects’ overall outcome has led many software development organizations to appreciate its significant role in the pursuit of cost reduction, schedule overruns decrease and, generally, improved performance. In line with this issue, this study investigates a wide range of relevant literature, proposes a new conceptual framework for managing risk in software development projects, introduces new conceptual factors, brings out their interrelation, and suggests new prospects and managerial implications for both practitioners and academics. The conceptual framework has two basic axes. Firstly, the determination of the impact of constructs such as Project Characteristics, Project Risk Management Team, Risk Identification Approaches, and Project Quality on the level of Project Risk. The majority of the items used to measure these constructs are proposed for the first time in the literature. Additionally, the assessment of the impact of Project Risk (and all of the dimensions that compose it), simultaneously with the estimation of the impact of the Residual Performance Risk on the final subjective and objective Project Performance could provide project managers with a better picture of the effectiveness and adequacy of their risk management practices.