Strategic Risk Management in Software Projects: ISM-MICMAC Framework

Abstract

In the dynamic field of software development, identifying and managing critical risk factors is essential for project success. This study aims to model the primary risk factors influencing software projects using a novel approach. The research employs Interpretive Structural Modelling (ISM) combined with the Matriced' Impacts Croisés Multiplication Appliquée à un Classement (MICMAC) method to analyze and categorize these factors. ISM provides a structured framework for understanding the interrelationships between risk factors, while MICMAC offers insights into their driving power and dependence. This integrated methodology reveals a hierarchical structure of risk factors, classifying them into driving, linkage, and dependence categories. Key findings show that driving factors, such as External Dependencies and Requirements Volatility, are crucial to project success, necessitating proactive risk management strategies. Linkage factors, like Technical Complexity and Project Management, also play significant roles, while dependence factors, such as Technology Risks and Scope Creep, underscore the interconnected nature of these risks. The novelty of this study lies in its integration of ISM and MICMAC, offering a comprehensive framework to model and understand risk factors in software development. This approach provides valuable insights for project managers and stakeholders to better mitigate risks and improve project outcomes, contributing meaningfully to existing literature on software project risk management.