5 Risks You Need to Know When Building Software

Building software is a high-stakes, high-reward adventure. The capacity to foresee what can go wrong is essential because it allows you to minimise the need for rescue missions in your project. 

Anyone involved in software development should recognise the risks that typically arise and cultivate habits to lead their project to a successful outcome. Over the years, we’ve seen and mitigated some of the worst-case scenarios for these risks, and this article will help you do the same. 

What Risks Can You Encounter?  

1. Scope Creep 

Nearly every project experiences some degree of scope creep—sudden requests from customers or stakeholders to add “just this small thing.” When you continuously add these “small things,” you end up with reverse Jenga—sneaking in extra pieces that shouldn’t be there, while trying to keep the tower from toppling. 

The key is not to hastily address these requests. Instead, dedicate a separate meeting to discuss whether these changes are necessary, as they can significantly impact timelines and tasks within the scope. 

It’s also helpful to read up on the 10 steps to take before starting an app to safeguard against scope creep. 

2. Productivity Issues 

To make great tech, you need great people—not robots. Productivity risks can escalate through lack of resources, gaps in planning, or technical issues, slowing down processes or making tasks harder to implement efficiently. 

Agile methodology has been proven to break long projects into manageable milestones, reducing the chances of team members being stuck on a task or falling behind. Productivity tools like Jira are invaluable for tracking tickets, comments, and progress, ensuring that time estimations and task completion stay on track. 

3. Employee Turnover 

Employee resignations are rarely convenient and can create ripple effects across resource allocation, timelines, and budgets. When turnover occurs, focus on damage control, but also assess how many “dominoes” fall over. 

Instead of simply standing the dominoes back up, take the opportunity to review your framework, processes, and the reason behind the resignation. You might uncover valuable insights to improve your team’s workflow and morale. 

4. Technical Issues 

In software development, one universal truth is that no matter how well you plan, some problems will be unpredictable. Approximately 32% of software projects fail due to poor management, making risk management essential. 

Effective technical risk management involves monitoring, assessing the impact, and having a remediation strategy in place. Common technical risks include: 

• Constant changes in software requirements 

• High complexity in project architecture 

• Integration challenges across modules 

The goal is to reduce risks to a level where the cost of mitigation is outweighed by the potential benefits. For more strategies on risk mitigation, check out our free guide on preparing your product for the market. 

5. Other External Risks 

External risks often exist outside of your control but can still impact your project. These include: 

• Changes in governing rules and regulations 

• Adjustments in customer product strategy 

• Rapid market developments 

• Funding shortages for ongoing project development 

Having a specialised business analyst on your team can help identify and plan for these risks, ensuring your project can pivot smoothly when unexpected challenges arise. 

2024 Update: PRINCE2 Risk Management Approach 

A highly effective way to manage risk is by employing the PRINCE2 Risk Management Approach. PRINCE2 is a well-known project management methodology that provides a robust framework for managing risks across all stages of a project. 

The PRINCE2 Risk Management Approach follows five key steps: 

1. Identify Risks: All potential risks are identified, documented, and classified by their probability and impact. 

2. Assess Risks: Each risk is assessed based on its likelihood and the severity of its potential impact on the project. This evaluation helps prioritise which risks to mitigate first. 

3. Plan Responses: Strategies are developed for responding to identified risks. This could involve avoidance, mitigation, transfer, or acceptance of the risk. 

4. Implement Responses: The planned risk responses are put into action, ensuring that the risk management strategy is active throughout the project lifecycle. 

5. Communicate: Continuous communication is maintained regarding risk status, updates, and mitigation strategies among all stakeholders to ensure transparency. 

The PRINCE2 methodology provides a structured yet flexible approach to risk management that ensures risks are managed proactively rather than reactively. For a detailed breakdown of how to apply PRINCE2 to your risk management strategy, refer to this guide on PRINCE2 risk management. 

Conclusion 

By carefully considering these risks and employing strategies like the PRINCE2 Risk Management Approach, you’ll be in a better position to navigate the unpredictable waters of software development. Prepare, monitor, and mitigate risks to ensure that your project is not just built, but built to last.