Risk Analysis Scoresheet

External Value Score Problem Counter Measure

Dependency Factor

Multiple vendors / Y = 2, N = 0 Coordination. Ensure adherence to standards, both technical and managerial.
contractors? Emphasize the importance of regular status reporting.
Poor vendor support? Y = 1, N = 0 Time wasted waiting for response to Impose contractual constraints/safeguards. Request documentation in
queries or due to rework arising from advance. Ensure effective account manager. Identify a user group
mistaken assumptions made by the with other clients.
project team in the interim.
Critical dependence Y = 2, N = 0 May miss milestones waiting for Ensure suppliers are aware of schedule commitment. Request interim
on external deliverables. status reports and review of partially complete deliverables so that the
suppliers? project team can verify the supplier's estimates of the effort to go.
Impose contractual obligations.
Number of inter- < 3 = 0, 3-5 = 3, > 5 Time wasted awaiting completion of Have a co-ordination project with the critical path specified in terms of
project =5 other projects not within the stage projects. Recommend a strategic / architectural plan is produced.
dependencies? manager's control.
Overlapping scope Y = 3, N = 0 Parallel, or duplicate, development of Establish cross-project standards to ensure consistency. Establish
with other projects? similar areas with different change control procedures to manage the different changes proposed
approaches causing confusion and by different systems. Recommend a strategic/architectural plan is
irritation to the user. produced.
Contradicts LRSP Y = 10, N = 0 Project initiated for no justifiable Ensure Project Board and Strategy Committee are aware of the
direction? reason, e.g., political. situation.
Plan requires Y = 2, N = 0 Time and expense Investigate training current resources. Plan gradual take on to allow for
extensive recruitment familiarization and training. Investigate viability of using short term
of resources? experienced contractors.

External Dependency 0 Low Risk

Total

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Organizational Value Score Problem

Factor
Number of user Equal to number of Not obtaining consensus.
areas and decision user areas / decision
makers? makers.
Multiple geographical Equal to number of Time to distribute deliverables and
locations? geographical areas co-ordinate activities.
divided by the
number of
implementation sites

Previous user IS Y = 0, N = 1 Unrealistic expectations. Lack of

project experience? communication. Lack of knowledge
of roles and commitment.
Size of departments < 200 = 0, 200-500 = (This is the number of people whose
impacted? 1, 500-2000 = 3, > function will be changed as a
2000 = 5 consequence of the new system)
Complexity of requirements and
possibility of conflicts.

Inappropriate level of Y = 10 N = 0 When a problem arises, the sponsor

sponsorship? may not have the authority, or
perspective, to support the project
adequately.
Key users Y = 5, N = 0 Lack of understanding of
unavailable? requirements. Lack of involvement of
users in production of deliverables
with a consequential lack of
commitment to project.

Organizational Y = 2, N = 0 Resistance to system by

changes required (in organization.
terms of structure /
responsibility)?
Level of changes High = 3, Moderate Users inadequately prepared for a
required to user = 2, Low = 1 successful implementation and
procedures? handover.
Are users dually Y = 0, N = 3 Lack of commitment to assuring
involved in the quality of technical deliverables and
management and to plan.
execution of the
project?

Will extensive Y = 2, N = 0 Inadequate budget and time frame

education be for training.
required to facilitate
use of the system?
Organizational Total 0 Low Risk

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Counter Measure

Identify key representative. Establish

decision making
process/responsibilities.
Select a pilot implementation site
then a phased implementation.
Establish focal point for development
activities.

Schedule briefing and training

sessions early in project. Increase
user involvement/participation.
Training requirements and
implementation logistics. Consider
phased implementation if self-
contained increments can be
identified. Plan implementation as
early as possible.

Extend project board to include a

more appropriate sponsor.

Use techniques which are less

dependent on user input, e.g.,
relational data analysis rather than
data modeling. Use user
representative on Project Board to
"encourage" user participation.
Extend review activities.
Hold briefings throughout project on
what the repercussions will be.
Increase user involvement. Obtain
top management commitment.
Increase level of user training, use of
prototypes and presentations of the
new procedures, both system and
manual.
Increase user participation in the
technical activities by use of JAD,
and the interactive sessions, to
gather information and create
models. Determine user roles in the
project organization (Project Board,
Project Coordinators).

Include prior walkthrough of the

training sessions and materials to
gain commitment from user
management.

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Planning Factor Value Score Problem

Dependent on scarce Y = 5, N = 0 Competition for resources or
resources / skills? personnel with appropriate skills.
Complex task Y = 3, N = 0 Critical dependencies unknown,
dependencies? increased chance of slippage.
Critical Y = 5, N = 0 May have to cut back on quality
implementation date? and/or functionality, or project
discarded if date missed.

Informal control Y = 5, N = 0 Inaccurate Project Status information.

procedures?

Effort versus elapsed Effort time/Elapsed The greater this ratio, the greater the
time? time number of simultaneous tasks.
Increased staff associated with
development and associated
overheads.
Number of major < 3 = 1, >= 3 = 3 Managing Interfaces.
subsystems?

Subsystem more Y = 2, N = 0
than 3 elapsed
years?
Subsystem more Y=2 N=0 Increased chance of slippage due to
than 12 elapsed possible changes in requirements or
months? scope over longer elapsed time.
Level of confidence? >85% = 1, <85% = 3 Level of planning experience of
unknowns within the plan may make
estimates low.
Key dates set by Y = 0, N = 3 No commitment to plan,
project team from the unachievable date.
plan?
Experience of project High = 0, Moderate Plans may not exist. Control
manager? = 1, Low = 3, None procedures may not be adequate.
allocated = 4
Planned resources Y = 0, N = 5 New plan will be required to fit with
available? maximum resource constraint or
project could be canceled/postponed.
Planning Factor Total 0 Low Risk

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Counter Measure
Make resource requirements known
as early as possible.
Increase level of planning. Tighten
project control.
Verify significance of date. Ascertain
which portions of system are required
for that date. Consider incremental
development. Plan and control at
detailed level.

Encourage take on of formal controls

by training and provision of project
management software.
Increase control procedures and
introduce additional level of
management. Divide into achievable
sub-systems.
Have a co-ordination project.
Establish overall architectural plan.
Minimize project interdependencies.
Increase the number or control
points.
Increase the number or control
points.

Ensure management tolerances and

contingencies are identified.

Verify significance and justification for

dates. Produce a plan.

Provide training and support from

experienced project manager.
Increase involvement by Project
Board.

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Business Case Value Score Problem

Factor
Major increase in Y = 3, N = 0 If greater than +/-5%, then likely to
costs possible? miss stage end targets.

Evolving business Y = 5, N = 0 Do not know where project should be

requirements? heading, difficulty in justification,
significant rework likely.
Incomplete definition Y = 5, N = 0 Cannot estimate effort as a lot of
of scope / rework is likely.
requirements?

Ill-defined benefits? Y=2, N=0 Difficult to select optional solution,

potential for project being canceled.

Lead time for return Twice development May never achieve pay-back.
on investment time = 2, Five times
or more the
development time = 5
Mission critical Y = 5, N = 0 Business may fail if project fails.
system?
Fundamental to IS Y = 5, N = 0 Foundation system impacting other
strategy? developments.
Business High = 1, Low = 3 System perceived as belonging to
commitment to I.S. department.
development?
Business Case Total 0 Low Risk

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Counter Measure

Set appropriate tolerance levels.

Investigate mechanisms for further
controlling costs.
Use iterative development approach.
Establish detailed scoping study.
Increase user involvement.
Involve more senior user
representatives. Establish detailed
scoping study. Increase time spent
in analysis.
Use CRA to help define tangible
benefits. Establish focused sessions
with user to evaluate benefits.
Reduce scope of system to include
most profitable segments.

Increase planning and level of

control.
Increase planning and level of
control.
Hold assessments requiring user
sign-off. Increase user involvement.
Produce detailed Business Case.

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Technical Value Score Problem Counter Measure

(Environment)
Factor

Inappropriate Y = 2, N = 0 Required tools unavailable. Review tools and associated

development tools? justification. Evaluate other
productivity areas.
New / unfamiliar Y = 5, N = 0 Time required for learning curve Conduct training. Recruit
technology? during development. experienced staff. Obtain vendor
Stable development Y = 0, N = 5 Lost information. Time required for support.
Document in standard format as
team? handover. project progresses. Increase
attendance at reviews to spread
knowledge.
Low team knowledge Y = 1, N = 0 Increased reliance on users. Increased user participation.
of business area? Increase frequency and formality of
Project team skills? Expert = 0, Balanced If the balance of expertise is low, reviews.
Increase the frequency of Quality
= 1, Trainee = 5. then there is an increased risk of Assurance Reviews and Project
defects. Checkpoints. Include experienced
staff as specialized technical support.
Account for experience levels when
planning.

Use of development Y = 0, N = 2 Project team does not know what to Implement a standard approach to
method / standards? do. Tasks may be duplicated or development, ensure staff familiarity.
Technical (Project) omitted.
Factor
Complexity of Low = 0, Moderate = Increased risk of defects. Increase effort in Logical Design to
functions? 2, High = 5 validate. Increase level of reviews.
Use formal techniques.
Complexity of Low = 0, Moderate = Performance problems. Increase data validation steps
database? 2, High = 5 throughout. Ensure thorough
Physical Design Tuning. Increase
DBA involvement.
Database to be Y = 3, N = 0 Difficult to tune successfully in Attempt to establish overall volumes
shared by a number Physical Design. and requirements. Keep design
of applications? flexible.
Number of physical < 3 = 0, >= 3 = 3. Increase risks of systems failure. Increase time in defining interfaces in
system interfaces? detail. Involve experts from
associated systems.
Clearly specified Y = 0, N = 3 Rework may be necessary as Increase user involvement.
requirements? systems may not meet users' needs.
Number of design 0-25% = 0, 25-60% Rework may be necessary as system Increase user involvement.
decisions at = 3, 60%+ = 5 may not meet user's needs
discretion of systems
architect (no user
involvement)?
Is a package solution Y = 0, N = 3 Effort required in design, construction Ensure buy/build option is
available? and testing. appropriately conducted.

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If using a package, Y =0, N = 3 Mismatch likely. Carry out evaluation if cost justified.
was the package
evaluated and
selected, based upon
detailed
specifications and
requirements?
If using a package, 0-5% = 0, 5-15% = Required information may be difficult Contract vendor to do changes.
were package 3, over 15% = 5 to obtain, or not supported. Evaluate alternative solutions.
changes required? Minimize changes to front/back ends.
Complex on-line Y = 2, N = 0 Increased risk of technical problems Add activities to prototype the on-line
networks? (incompatibility, etc.) architecture. Involve technical
experts in physical design stage.
Multi-level hardware Y = 2, N = 0 Interfaces, data distribution. Separate technical feasibility project
requirement? started early. Ensure availability of
required skills.
Technical
(Operational) Factor

Upward compatible Y = 0, N = 3 Hardware constraints will increase Increase time scheduled for physical
hardware? problems in physical design and design and construction stages.
implementation. Involve technical experts in physical
design stage.
24 hour availability? Y = 3, N = 0 Tight timing constraints will increase Increase time scheduled for physical
problems in physical design and design and construction stages.
construction. Involve technical experts in physical
design stage.
Rapid response time Y = 3, N = 0 Tight timing constraints will increase Increase time scheduled for physical
(below 2 seconds) ? problems in physical design and design and construction stages.
construction. Involve technical experts in physical
design stage.
Small batch window? Y = 3, N = 0 Tight timing constraints will increase Increase time scheduled for physical
problems in physical design and design and construction stages.
construction. Involve technical experts in physical
design stage.
High-volume Y = 3, N = 0 Tighter performance constraints will Increase time scheduled for physical
throughput? increase problems in physical design design and construction stages.
and construction. Involve technical experts in physical
design stage.
Very large database? Y = 3, N = 0 Performance and storage constraints Increase time scheduled for
will increase problems in physical designing the database and for
design and construction. storage and performance predictions.
Involve technical experts in physical
design stage.

Short recovery cycle? Y = 3, N = 0 Tighter recovery constraints will Increase time scheduled for physical
increase problems in physical design design and construction stages.
and construction. Involve technical experts in physical
design stage.
Technical Total 0 Low Risk

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External Score Risk

Dependency Factor

External Dependency 0
Total
Organizational Total 0

Planning Total 0

Business Case Total 0

Technical Total 0

Overall Project Total 0 Low Risk

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