Managing Risk in Computer Game Production

Tony Oakden AGDC 2004

 What is risk management? How does it work in computer game development? Do I need it? What are the benefits?

IGA and risk management

Improve productivity Developing publisher/developer relationship Personal/professional development

Perceived benefits
Increased productivity - efficiencies
Improved quality of product Reduction in costs through increased efficiency Greater confidence in project viability for developer and publisher

Unexpected benefits
Team cohesiveness
Confidence in project viability Structured approach to production management Development of culture of risk awareness

Project goals and scope

Cost

Time

Quality

Identification

Analysis

Treatment

Evaluation

Risk identification
All team members encouraged to identify risks

No risks were dismissed until they had been analysed and given a risk rating
Gibs Law: Anything you need to quantify can be measured in some way that is superior to doing nothing at all

Analysing risks
Combination of consequence and likelihood to produce a level of risk

Perceptions of risk vary depending on who is driving the process Essential to make the risk management plan flexible and adaptable to changing demands

Risk Matrix

AS/NZS 4360:1999 Risk Management Standard

Treatment of Risks
Avoid
Avert/contingency Transfer Accept

Avoid risks
Alter the scope of the project to remove the risk altogether

Avoidance and transfer are typically employed during the early planning stages of the project
Eg: Risk of producing a FPS engine from scratch extreme; treatment was to use Unreal engine

Avert/Contingency
Maintain a reasonable contingency throughout project

Build a model of accumulated risk

Contingency can be found in time, budget or quality and is commonly used to handle scheduling risks

Transfer risks
Insurance Contractors and third parties Distribution of risk to various stakeholders

Accept risks
Some risks have to be accepted despite their risk level Meteorite strike - high consequence but very low likelihood Employee illness - low consequence but high likelihood

Monitor and review

Essential to monitor and review the implementation of treatment actions This highlights any areas that require closer scrutiny, deployment of resources or alteration of risk level

Communication
Essential to ensure open lines of communication between all stakeholders throughout the life of the project Involve whole team ownership of the project and its associated risks

Beware of the temptation to build the best there is

T:V examples of successful risk management

Volumetric shadows Contingency planning of art assets

Scheduling of critical technology

T:V opportunities for improvement

Contingency allowance when integrating technology Management of external resources Acting on identified risks

Lessons learnt
Engagement and ownership Flexibility and adaptability Contingency Risk management takes time but it is worth it

Summary
Risk management takes time and resources but results in: Reduced risk of project deviation Increased efficiency Increased quality Increased cost effectiveness Increased job satisfaction

References
AS/NZS 4360:1999 Risk Management Standard Standards Australia (update 2004) Project Management (G. R. Heerkens) ISBN: 0-07-137952-5 Project Managers Toolbox (D. Z. Milosevic) ISBN:0-471-20822-1 Project & Program Risk Management (PMI) ISBN: 1-880410-06-0 Peopleware (De Marco & Lister) ISBN: 0-932633-43-9