The biggest risks in software development

Risks in software development abound.

Have a problem? A potential solution? A service you want to provide or a product you desperately need in order to better your day-to-day life? Well there’s probably an app for that–or at least one in development. Society relies on technology for the simplest and most sophisticated of tasks. That makes the role of software developer more in-demand. 

Being in-demand is great. Yet oftentimes with more opportunity comes more responsibility and risks are just an inherent part of that equation. Process is at the heart of a developers work, so let’s take a look at how identifying risks in software development upfront and making the exercise a part of your planning can help mitigate issues and set your business up for success. 

2024 Tech Company Risk Index is here

AI, staffing, the economy, and more. Find out what your industry is dealing with, and what you can to do mitigate your risks.

Learn More

Risk Management for Software Development

In order to create and deliver a quality product, you need to spend some time detecting risks in software development so that potential issues don’t become actual problems. Any variable or factor that can put your project in jeopardy of missing a deliverable or deadline is a risk to your business. So, poor risk management in itself–or lack thereof–has the ability to completely derail your development goals. 

On the other hand, good risk management can help you spot risks and effectively respond to them before they tank a project. Not sure where to start? First begin by identifying potential risks to your software plan and be sure to include these top threats to developers within your overall assessment. 

Top 7 Risks in Software Development 

Sure, there could be an unlimited list of risks in software development or any given project, but we’re going to focus on the most common and extensive. Be sure to assess issues that could arise outside of these core threats too, taking into account specific product requirements, client requests and industry standards. 

1. Technical Debt: Money always matters in business and that fact is especially true for software developers. Technical debt or code debt however doesn’t simply refer to a monetary debt though. Technical debt involves the cost of future rework that could occur when speed is prioritized over long term design. In these circumstances technical shortcuts may have been made in order to meet a deadline. So while a product may have been delivered on time it may still require further attention and that additional time may not have been budgeted for and can eat into your profit. And if not addressed it could impact the overall effectiveness of the software created for a client and your quality of work and reputation could suffer. 

How to mitigate technical debt: Consider utilizing agile development practices that can help teams adapt to changes without negatively impacting release dates. Further refactoring code and building in code reviews into your initial process can better ensure a cleaner product along the way and at the time of completion. 

• Security Vulnerabilities: Performance and security of your software can be put in jeopardy when vulnerabilities are left unfortified. This can put your product and client data at risk. User restrictions must be properly enforced and addresses, passwords, and account numbers must be properly protected. Plus insecure design and security misconfigurations can also leave your product vulnerable to a cyber attack. 

How to mitigate security vulnerabilities: The most effective way to prevent software vulnerabilities is to use secure coding practices that enforce security standards. Don’t cut corners and be sure to map up necessary safeguards prior to beginning work. 

• Scope Creep: Scope creep occurs when a project’s initial deliverables change overtime and end up creating a much different product than initially agreed upon and this can put timelines and deadlines in jeopardy. 

How to mitigate scope creep: Create clear Scope of Work documents (SOWs) with clients so that expectations are clear and deliverables are agreed upon between yourself and your clients. You can also keep scope creep at bay by separating your project into manageable segments or iterations so that you deliver parts of the work within sprints and not all at once. 

• Unrealistic Deadlines: Client demands can be hard to ignore. Oftentimes deadlines may be proposed that seem unrealistic, but in an effort to please the client or get the gig, you agree to the terms. While landing the job is important, so is sticking to deadlines and meeting expectations. If you agree to unrealistic deadlines you may be putting your product’s quality at risk, which can spark a trickle down effect of other problems, like security vulnerabilities. 

How to mitigate unrealistic deadlines: You can mitigate this risk by creating a thorough project plan that allows you to set realistic deadlines. You could also create a portfolio of examples so that clients can easily see what certain timelines yield in terms of overall results. 

• Poor Communication: Related to some of the previously mentioned risks in software development, poor communication can really set your plan and product up for disaster. Inaccurate estimations of costs, deadlines and outcomes can lead to customer dissatisfaction.

How to mitigate poor communication:  You can mitigate this risk by clarifying the likelihood of your estimations so that stakeholders can better form realistic expectations. Further SOW documents and agreements can also help set expectations. 

• Inadequate Testing: Inadequate software testing can lead to a number of issues, including software bugs and defects, poor user experience, increased maintenance costs, delayed releases and overall damage to your reputation. 

How to mitigate inadequate testing: Ultimately testing is an essential part of any product plan or roadmap. Do your due diligence and plot out testing checkpoints. You may even want to invest in third party testing to ensure any blind spots are addressed. 

• Talent Shortage and Turnover: If you’re not doing the code work yourself, or if you lack sufficient skills to execute on all of the code work yourself, you may find that finding and keeping adequate talent is a challenge. If you cut corners or go with a less experienced developer you could be left with bugs, logical errors and overall experience flaws that require rework or long term maintenance.  

How to mitigate talent shortage and turnover: If you’re working with hired help, create coding standards for software developers to reference so that coding best practices are readily available. Also try to work with developers who can provide referrals and examples of past work. You may also want to create a test for prospective hires so that you can get a better idea of their abilities before you assign work. 

How to Plan for the Unexpected

Most of the risks in software development that we’ve mentioned can be kept at bay with the risk mitigation strategies outlined, but obtaining insurance can further help protect your business. Technology Errors & Omissions Insurance and Cyber Liability Insurance are two additional coverage types software developers may want to purchase in addition to a general Business Owners Policy.

Tech E&O insurance was created to specifically protect technology companies by covering risks associated related to a technology product or service’s failure to perform as intended or losses arising from acts, errors, or inadequate, negligent work committed by the tech company in the course of its performance of these services. So, all-in-all it’s pretty perfect coverage for software developers. And a cyber insurance policy, also referred to as “cyber risk insurance” or “cyber liability insurance” coverage, is a financial product that enables businesses to transfer the costs involved with recovery from a cyber-related security breach or similar events.

Planning and process are essential components to your business. So build risk prevention into every plan and you’ll be doing right by yourself and your clients. Have questions? Embroker agents are always here to help, chat with one now. 

Industry-leading protection for your tech company.

Get the right coverage at the best price.

Find a Policy

from Insurance – My Blog https://ift.tt/kqrzgmd
via IFTTT