Disincentives for communicating risk: A risk paradox

Abstract

Problems with the risk management in medium to large software projects have been well documented. For major software projects to be completed successfully, an open and cooperative attitude towards risk must be maintained. Despite this significant incentive, project stakeholders frequently conceal risks. This article identifies reasons in three key areas for such behaviour, and suggests approaches that reduce the motivation for this behaviour thereby providing a basis for effective risk management. Examples drawn from a study, undertaken by the authors, of a medium-sized industry project are used to illustrate many of these issues.