Risk-based earned value management: a novel perspective in software engineering

Abstract

In project management context, the earned value management (EVM) is a well-known technique in the area of project cost management. This paper primarily incorporated risk analysis through project cost management. This is a crucial subject in project management, as projects are facing a growing complexity with higher uncertainties. The proposed model attempts to develop a new formalism to measure risk costs. Here, a new metric namely risk performance index (RPI) is introduced. The main objective of this model is to find out the best-known scenario for project at completion cost considering risky conditions and managing project risks and risk interactions. The proposed approach applied in a software engineering project. Finally, an illustrative case study presented demonstrating the proposed model can be efficiently applied through real case software projects.