Product risk involves the possibility that a work product (e.g., a specification, component, system, or test) may fail to satisfy the legitimate needs of its users and/or stakeholders.
When the product risks are associated with specific quality characteristics of a product (e.g., functional suitability, reliability, performance efficiency, usability, security, compatibility, maintainability, and portability), product risks are also called quality risks.
Project risk involves situations that, should they occur, may have a negative effect on a project's ability to achieve its objectives.
Here are some examples-
A. Incorrect totals on reports = product risk
B. Change to acceptance criteria during acceptance testing = project risk
C. Users find the soft keyboard too hard to use with your app = product risk
D. System responds too slowly to user input during search string entry = product risk
E. Testers not allowed to report test results in daily stand up meetings- Project risk
F. If the expected security features are not supported by the system architecture, then the system could be seriously flawed - Product risk
G. . If the developers run over budget, or run out of time, that is a problem with the running of the project – Project risk
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