Stocks plunged again today, sending the Dow Jones industrial average down 679 points — more than 7 percent — to its lowest level in five years. The Dow ended the day at its lows, finishing down 678.91, or 7.3 percent, at 8,579.19. The blue chips hadn’t closed below 9,000 since June 30, 2003, and haven’t closed at this level since May 21, 2003.

This reminds me of the risks involved when you are into stock trading. It also reminded me on Software Development and Project Risks. What is a Risk anyway? The original meaning of risk is associated with gambling — to risk is to gamble. When we take risks, there is a chance of gaining and perhaps an equal chance of losing.

The following are the Six definitions of Risk:

1. Risk is the probability of suffering loss
2. Risk is the probability of suffering loss while pursuing goals.
3. Risk is the combination of probability and magnitude of loss.
4. Risk is the probability of suffering loss while pursuing goals due to factors that are unpredictable or beyond.
5. Internal risk is the probability of suffering losses while pursuing performance and growth goals because of
   inadequacies in process capability (including core and support processes) and organizational structure.
6. External risk is the probability of suffering loss while pursuing performance and growth goals because of uncertainties in external conditions.

This entry was posted on Thursday, October 9th, 2008 at 7:15 pm and is filed under Software Risk Management.