Asked • 04/12/19

How do you plan for risks in your project's estimates?

I have been working on the risk-management topic in software development for a while. According to the different literature there could be knowns knowns (typical risks), known unknowns (product related risks), and unknown unknowns (black swans).- **known knowns** You have some industry statistics and can use some simulations (e.g. RISKOLOGY) so you can add say 20% to scope and schedule.- **known unknowns** Here you can brainstorm with the team and come up with the list of project related risks, and come up with preventive actions and estimate them, so these can be included into the scope. But what about the remainder of the known unknowns? Should you plan for contingencies? How much? 10%?- **black swans** Just plan for contingency? How much? 20-30%?How do you plan for these risks at the project initiation or planning phase, especially when customer asks for estimates? How do you usually present all these different types of risks to the customer, especially if the risks double the budget or schedule estimates?

1 Expert Answer

By:

Henry J. answered • 04/21/19

33 + years of experience, PMP Cert, and Masters in Project Management

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