Do effective risk management affect organizational performance

Salman Saleem, Zain-Ul Abideen


Due to globalization and intense competition, risks are increasing and risk management is becoming an integral part for the success of almost every organization, especially for the software development sector because of their high-risk projects, as the risks are associated with every development step of projects undertaken. The main purpose of this study is to report on the current practices of risk management in Pakistani software development sector. Based on the data, collected from 25 organizations working in software development sector, the results indicates that risk management practices are not widely used by the organization(s), moreover most of the organizations do not have documented risk management policy properly. Therefore, these organizations cannot deal with the risks systematically and sometimes face negative consequences for the non-systematic approaches. However, few companies have implemented certain risk management techniques and are enjoying high performance.

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