Software development is like running along the edge of the Grand Canyon. It's risky, very risky. Especially with blind folds on. If you don't think so, then you're probably spending other people's money. Software projects are a risky endeavor.

According to the Standish Group, in 2000, U.S. government and businesses spent approximately $80 billion on canceled software projects, and another $60 billion for budget overruns. In 2000, only 28% of software projects could be considered successful (meaning they were executed on time and on budget) while 23% failed outright (meaning that they were abandoned). The rest were considered "challenged." Of the challenged or canceled projects, the average project was 189 percent over budget, 222 percent behind schedule, and contained only 61 percent of the originally specified features.

Software is a Treacherous Business. It needs to be emphasized, because it's very difficult for the software people you have working for you to face the truth. If software people told stakeholders the truth about software risk, there would be a lot fewer software projects started. In fact, it's so anti-self-interest that most software developers do not even acknowledge this reality. It never crosses their minds.

How can we get people to simply address the issue of software risk? Understanding how to avoid these risks is the key to getting over the fear. With these extreme risks involved, it's really software malpractice not to determine the biggest sources of risk and to mitigate them. Click here to create software with minimum risk.