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

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

AS/NZS 4360:1999 Risk Management Standard

Risk Matrix

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