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This presentation by Tony Oakden at AGDC 2004 outlines essential aspects of risk management in computer game production. It defines risk management, its importance, and benefits including improved productivity, cost reduction, and enhanced project viability. The talk emphasizes a structured approach to risk identification and analysis, encouraging team involvement. Key concepts such as risk avoidance, transfer, and contingency are discussed, along with the significance of flexibility and communication throughout the project lifecycle. Learn how effective risk management can lead to better project outcomes in game development.
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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
Risk identification • All team members encouraged to identify risks • No risks were dismissed until they had been analysed and given a risk rating Gib’s 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 it’s 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