Risk Analysis

A Risk Analysis is a process that involves scrutinizing potential risks to a project to understand their nature and potential impact. By evaluating both the probability of a risk occurring and the severity of its consequences, teams can strategically prioritize their work and allocate resources to the most critical areas.

Example: Imagine you're developing a new software application. A risk analysis might reveal that a minor bug in the "contact us" form is highly probable, but the impact would be low. Conversely, a potential vulnerability in the payment system, while less likely to occur, could have a devastating impact, leading to data breaches or financial losses. This analysis would lead the development and QA teams to focus their efforts and resources on thoroughly testing the payment system, rather than the contact form.