ABSTRACT
This chapter looks at the possibility of natural risk identification and analysis in software projects. The intimate relationship between decision analysis and risk discovery is a recurring theme in risk management. The decision support systems employed by a project team are natural warning systems, which have the power to predict risk. Risk indicators are numerous, but the early indicators are especially useful. The early indicators can be identified from the metrics system of the organization. In a product development environment, metrics-based risks estimation can be done at the completion of each increment. Metrics-based risk intelligence depends on the choice of critical metrics and treatment of data. The metrics system is similar to an observation post in the project. The very process of risk signal extraction involves analysis. In fact, risk identification is a result of analysis and the analysis consists of risk assessment, often expressed as quantitative measures.
