Software development risks: types & mitigation strategies

Unrealistic deadlines, inaccurate estimations, inadequate allocation of human resources, poor scope definition, or frequent project scope expansions lead to delays in software product delivery. This forces the client to either move the deadlines to fit the scope of work or add extra specialists to the project to speed up the process.

How to minimize the risks:

• Collaborate with the software development team to estimate the duration of each project task and define the project’s milestones, allocating buffer time for unexpected setbacks and unforeseen issues. Make sure the project schedule is well-documented and clear to all team members.
• Establish strong project controls to measure project status based on planned schedules.
• If deadlines are non-negotiable, prioritize the development of the product’s critical functionality.

If a project specification only briefly describes its scope or if the scope continuously changes, additional requirements will inevitably be introduced as work progresses. This increases the probability of missed deadlines, increased costs, and compromised product quality.

How to minimize the risk:

• Elicit all software needs and requirements, conduct a value vs. effort analysis, and draw up a list of 'must-have,' 'beneficial,' and 'nice to have' product features.
• Set up a clear change control process to document requests for changes, assess the impact of changes on project timelines and budget, and ensure the approved changes are implemented with minimal disruptions.
• Split the project into short, manageable iterations to enable teams to adapt quickly to changing requirements and better track project progress.

Ineffective communication between the project team and business users can result in scope creep, inadequate resource allocation, and unmet end-user expectations.

How to minimize the risk:

• During the initiation stage, create a communication plan for project stakeholders. Clearly define what information they will receive as well as the communication methods and frequency at which the information will be shared.
• Promote effective communication and collaboration among teams and team members using dedicated software tools like Slack or Microsoft Teams.

Productivity issues can arise due to unclear project requirements, conflicts between team members, insufficient expertise, or when the project team members work in different time zones and can’t collaborate sufficiently.

How to minimize the risk:

• Clearly define the team structure and roles and responsibilities of each team member.
• Practice task rotation and pair work to improve team motivation and productivity.
• Allocate time for real-time communication and collaboration between the team members during the initial estimation of the project’s timeframe.
• Involve your team members in surveys and hold regular meetings to gather their opinions on what may affect their work and satisfaction.

When a team member leaves a software development project, searching for a candidate with the required skill set can take a lot of time. This in turn can lead to increased workload for other developers involved in the project, project delays, and compromised product quality.

How to minimize the risk:

• Ensure that all activities within the project are properly documented so that new team members can easily grasp them.
• Organize training programs for developers to enhance their skills relevant to the project, facilitate knowledge transfer between the team members, and assign mentors to new team members to streamline project onboarding.
• Consider IT outsourcing to save time on finding the right talent for your in-house team.

Opting for an unsuitable or outdated tech stack, as well as embracing new, unproven technologies, can lead to low product quality. In the long run, this can result in problems with maintaining, updating, or upgrading your software, consequently increasing its post-deployment costs.

How to minimize the risk:

• Evaluate the compatibility of the selected technology stack with your product's long-term vision to ensure its successful evolution. For example, whether the chosen technology allows for the platform's scalability if the number of end-users rapidly increases.
• Conduct an audit of the target IT environment to verify the final solution can be seamlessly integrated with the existing systems and support future integrations.
• If the project relies on new technologies, develop a contingency plan that allocates adequate time and resources for learning and problem-solving.

Low-quality code can cause software performance errors, difficulty in scalability, security vulnerabilities, maintainability, or accumulation of technical debt. Poor code quality can stem from insufficient time or effort allocated for code checks or inadequate skill levels.

How to minimize the risk:

• Conduct regular and thorough manual code reviews after the automated checks.
• Consider code refactoring to improve code quality, readability, and maintainability.
• Adhere to the globally accepted coding standards for specific programming languages as well as guidelines and rules established in-house.
• Implement suitable Agile methodologies for project management to promote good coding practices, early problem resolution, and ongoing improvements.

Software security can be compromised due to poorly defined requirements, incomprehensive information from stakeholders, or the project team neglecting secure software development practices. Security risks may also occur when the project team lacks certain skills or is unaware of relevant security tools and techniques. As a result, software with compromised security can lead to data breaches or leaks, non-compliance with general or industry-specific regulations, and financial and reputational losses for the company.

How to minimize the risks:

• During the discovery stage, specify the solution’s type, end users, and all applicable standards to define the software’s security requirements.
• Adhere to secure coding standards.
• Introduce DevSecOps to the SDLC to make security a shared responsibility among all team members involved in software development and integrate security practices throughout the SDLC.
• Follow established secure software development guidelines and frameworks like NIST SSDF or partner with a software vendor that adheres to these guidelines.

Unpredictable factors like legislative or regulatory changes, natural disasters, economic shifts, and changing consumer behavior can delay product delivery and incur extra costs.

How to minimize the risks:

• Prepare a contingency plan to avoid or minimize damage caused by external factors.