Validating differential relationships between risk categories and project performance as perceived by managers

Abstract

Effectively controlling software risk helps ensure project performance. Although the relationship between risk and software project performance has been continuously examined, project managers who have attempted to apply existing knowledge to mitigate risky areas remain confused. This study presents two distinct risk prioritization strategies to assist practitioners in developing risk mitigation plans when considering the performance aspects that a particular project should pursue. On the basis of data from 139 software projects, this study shows that each aspect related to project performance is influenced by at least two types of software project risks: objective risks and resilience risks. In particular, objective risks negatively influence all aspects of project performance. Finally, the study shows that using either a risk-focused prioritization strategy or a performance-actualized prioritization strategy provides a gradual management foundation for controlling risks without worrying about excess or deficient risk management investments.