Formalization of Risks of IT Companies: The Managerial Aspect

Risk management is an important process for the success of an IT project. Risk management provides significant benefits for companies, projects, and stakeholders associated with project implementation. This cannot be achieved without introducing risk management at every level of the business. Risk management becomes a management instrument that is essential for the project manager to increase the chances of success and solve problems before risk becomes a major problem that can threaten project goals. IT projects are characterized by a high level of risk and can have different approaches to risk management. IT projects (in the terms of software) have risks and uncertainties. Risks can be mitigated, managed, and maintained in accordance with planning and assessment. Common risks can be: user requirements, project complexity, planning and control, team, organizational environment, technology, and financial risk. The presence of risk management and risk manager influences the success of the project, risk management (especially risk analysis and monitoring and control of risk response) that is related to the subjective effectiveness of IT projects. There is a link between risk management and the success and subjective effectiveness of IT projects. A project is considered successful if its result is appropriate or better than determined during planning. Risk management can lead a project to success and achieve its subjective effectiveness only if the risks and ways to control them in the project were identified before it started. Conversely, proper risk management does not affect costs, schedules, and cost overruns, as these are three interrelated and defined positions in project planning.