Managing Risk: Methods for Software Systems Development

8 Resolve Risk

The mastery of risk is the foundation of modern life, from insurance to the stock market to engineering, science, and medicine. We cannot see the future, but by calculating probabilities, we can do the next best thing: make intelligent decisions and take control of our lives on the basis of scientific forecasts.

—Peter L. Bernstein

When you think of techniques for risk resolution, you might think of prototyping and simulation. Prototyping is a technique for reducing risk by buying information. Knowledge is gained through creating a physical model without adding the implementation details. Prototyping validates mental models and provides an effective means for communicating with the user community. Simulation is an analytic model ...