Question

What is the difference between product and production risk? How can they be mitigated?

Answer 1

Business risks associated with a project are usually higher management concerns (although project managers should realize that project risks impact business risks) and revolve around the potential impact on the organization as a whole if individual projects suffer some form of disaster. Loss of confidence in the company or corporate embarrassment resulting from a failed product or service can lead to lower market share and lower customer base resulting in lower share price and loss of turnover or income. Product threat is the set of things that might go wrong with the project's system, technology, or anything. Brand risks should also be classified and calculated in the same way that project and company risks are quantified (using probability and impact). The main difference with a consumer risk is that it is mitigated by sufficient testing usually, but not always (on the other hand, testing can not mitigate a project threat).

Product threats can be categorized in many respects, but they fall into functional and non-functional one of two main categories. Functional risks relate to how the product may not perform the activities it is intended to perform, such as data receiving, calculating, reporting and interfacing with other systems. Non-functional product risks are related to issues such as not performing a (correct) calculation fast enough or being unstable with a high number of users at the same time. Products from different domains will have some typical risks and some risks that are either special or less likely to occur (or have a smaller overall impact).

In general, the harm associated with a process hazard can be expressed in terms of the additional time and money required to achieve the desired results for the system. The test director must take measures to handle the system threats that endanger the performance of his findings throughout the test cycle. As such, defining the risks to the test system specifically is essential for a test manager. The company and other stakeholders will have a better understanding and evaluation of the risks to the test system when handling the full execution cycle.

Project and company risks can be mitigated in a number of ways: preparing well in advance, ensuring the availability of back-up resources, having an appropriate monitoring and control process in place, ensuring that workers are properly trained for their position are just some of the mitigation methods. In terms of the probability that something will happen, plan and company risks can be categorized and quantified