Managing Risk With Estimates

Used with care, software development estimates can help you manage project risks. They let you peer into the future, though only as well as your current understanding allows. Estimating based on what you know is easy. Estimating based on what you know you don’t know is possible. Allowing for what you don’t know you don’t know is prudent.

Managing risk is a dynamic process. I’ve seen people document a risk in a “Risk Register” document and promptly ignore it. That’s not management. Instead, consider different ways a risk might be reduced in likelihood or consequence. When time or cost is of the essence, think about how you’ll determine what you can afford, and when you need to take a second-choice approach. (Continued)