Managing Risk in Computer Game Production

1. Managing Risk in Computer Game Production Tony Oakden AGDC 2004

2. What is risk management? • How does it work in computer game development? • Do I need it? • What are the benefits?

3. IGA and risk management • Improve productivity • Developing publisher/developer relationship • Personal/professional development

4. Perceived benefits • Increased productivity - efficiencies • Improved quality of product • Reduction in costs through increased efficiency • Greater confidence in project viability for developer and publisher

5. Unexpected benefits • Team cohesiveness • Confidence in project viability • Structured approach to production management • Development of culture of risk awareness

6. Project goals and scope Cost Time Quality

8. 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”

9. 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

10. Risk Matrix AS/NZS 4360:1999 Risk Management Standard

11. Treatment of Risks • Avoid • Avert/contingency • Transfer • Accept

12. 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

13. 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

14. Transfer risks • Insurance • Contractors and third parties • Distribution of risk to various stakeholders

15. 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

16. 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

17. 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

18. Beware of the temptation to “build the best there is”

20. T:V –examples of successful risk management • Volumetric shadows • Contingency planning of art assets • Scheduling of critical technology

21. T:V– opportunities for improvement • Contingency allowance when integrating technology • Management of external resources • Acting on identified risks

22. Lessons learnt • Engagement and ownership • Flexibility and adaptability • Contingency • Risk management takes time but it is worth it

23. 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

24. 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