Project size is a key risk indicator. Small projects run less risk and are often more tolerant of process lapses, while large projects run exponentially larger risk and need ever increasing management and control of risk. The testable requirements size estimate can help identify the overall project risk based on size. It can also help evaluate the reasonableness of the project estimates and highlight the high risk areas.
The risk of missing target dates and cost estimates are among the most common risks encountered on a project. Furthermore, undefined and poorly defined requirements are two key sources of risk. These often lead to the following risks:
Budget/Schedule problems when projects are understaffed due to requirements being ignored or misunderstood.
Poor quality due to lack of coverage of ignored or poorly understood requirements.
Rework, or low user satisfaction if poorly defined requirements are developed incorrectly.
Areas which are difficult to size based on a low percentage of ILRs identified can often pinpoint requirement problems that can lead to the above risks. Highlighting these along with the underlying assumptions can help identify these risk areas so they can be managed. As requirements are further defined and enhanced, the size estimate and risk assessment can be refined and continue to be used to help manage the project throughout the life cycle.