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Then Cf for this item [assuming that the weighting factors in equation (3) of Table 17-14 are as indicated above] would be 0.42.

From equation (1) of Table 17-14, the risk factor would be

In other words, the risk associated with this item is medium. Because most of the risk associated with this example arises from software changes, in particular the use of a subcontractor in this area, we can conclude that the risk can be reduced when the computer software developer is held "accountable for work quality and is subject to both incentives and penalties during all phases of the system life cycle."

Similar risk analyses would be performed for all other items and a risk factor would be obtained for each identified risk area. Risk areas would then be prioritized according to source of the risk (for example, are other items exhibiting excessive risk due to subcontractor software development?).

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Project Management Made Easy

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