Managing Risks and Feasibility Studies in Software Projects: Identifying Threats, Assessing Viability & Planning Mitigations

The discovery phase is the foundation of every successful software project.  By assessing risks and evaluating feasibility up front, teams can make informed decisions about scope, budget and timelines.  Without these insights, projects are vulnerable to costly surprises and rework.  This article explores how to identify and manage risks, perform feasibility studies and use the RIDAC approach to track risks, issues, decisions, assumptions and changes throughout the project.

To better understand the entire discovery process, check out our Ultimate Guide.

Understanding Software Project Risks

A risk is any event that could negatively impact a project’s objectives.  In software projects, common risks include unclear scope, underestimated budgets, unrealistic schedules, communication gaps, unreliable vendors and poor quality.  These threats can lead to missed deadlines, cost overruns and stakeholder frustration.  A proactive approach to risk management helps teams uncover threats early and plan mitigations before they become issues.

The Risk Management Process

A structured risk management process guides teams through addressing risks systematically:

1. Identify risks: Catalog potential threats, including legal, market, technical and operational risks.  A risk register provides a single place to log details, sources and context.
2. Analyze risks: Determine the likelihood and potential impact of each risk.  Understand how each risk relates to business processes and dependencies.
3. Evaluate and prioritize: Rank risks based on severity so you can focus on those that could have the greatest effect on the project.
4. Treat risks: Develop mitigation or response plans.  Assign owners, determine actions (avoidance, reduction, transfer, acceptance) and set timelines.
5. Monitor and review: Continuously track risks and adjust plans as conditions change.  Regular reviews keep the team aware of new threats and progress on mitigation actions.

Digital tools can centralize risk data, automate notifications and provide dashboards, making it easier to collaborate and respond quickly.

Risk Identification and Assessment

Identifying risks requires input from multiple stakeholders.  Project managers, business analysts, developers and clients should brainstorm potential threats.  Techniques such as SWOT analysis, checklists, lessons learned and expert interviews can help.

Once identified, assess each risk’s likelihood and impact using qualitative measures (high/medium/low) or quantitative models when data is available.  Document assumptions, triggers and possible consequences in the risk register.  This assessment enables prioritization and guides mitigation planning.

Mitigation Strategies for Common Risks

Different risks require tailored responses.  Below are examples of common risks and mitigation strategies:

• Scope creep: Avoid scope creep by documenting requirements clearly, establishing a robust change‑control process and holding regular scope reviews.
• Budget overruns: Create detailed cost estimates, build contingency reserves and track expenses in real time to detect deviations early.
• Schedule delays: Develop realistic schedules with buffer time for uncertainty.  Use incremental or agile methodologies to deliver value sooner and adapt to change.
• Communication gaps: Set up regular meetings, establish clear communication channels and invest in cross‑cultural training when teams span regions or cultures.
• Vendor reliability: Perform due diligence on suppliers, establish service‑level agreements and hold periodic performance reviews.
• Quality assurance: Implement comprehensive testing strategies, conduct code reviews and foster a culture of continuous improvement.

Mitigation plans should assign owners, outline specific actions and include contingency plans if initial responses are insufficient.

Using the RIDAC Approach

RIDAC stands for Risks, Issues, Decisions, Assumptions and Changes.  It provides a comprehensive framework to track and manage events that can influence a project:

• Risks: Potential problems that may occur.  Use the risk register to record them and plan mitigations.
• Issues: Problems that have already occurred.  Document issues separately, identify root causes and assign resolution actions promptly.
• Decisions: Choices made during the project—such as selecting a technology or changing scope.  Logging decisions ensures transparency and clarifies their rationale and impact.
• Assumptions: Conditions believed to be true without proof, such as expecting a vendor to deliver on time.  Document assumptions and validate them periodically to avoid surprises.
• Changes: Modifications to requirements, design or scope resulting from decisions or new insights.  Record changes, link them to their underlying decisions and assess their impact on timelines and budgets.

To implement RIDAC effectively:

• Create a RIDAC log or matrix that includes fields for description, owner, date, priority and status.
• Review RIDAC entries regularly in team meetings to track progress and make informed adjustments.
• Communicate RIDAC status to stakeholders through concise reports and dashboards.
• Use tools such as SWOT analysis, probability–impact matrices, fishbone diagrams and decision trees to analyze RIDAC items and develop action plans.

By integrating RIDAC into your project management process, you build a single source of truth that captures all critical information and ensures accountability.

Feasibility Studies: Assessing Project Viability

A feasibility study examines whether a proposed project is practical, profitable and aligned with business objectives.  It helps stakeholders decide whether to proceed with, modify or abandon an idea before investing significant resources.  Key types of feasibility include:

• Technical feasibility: Determines if the required technology, infrastructure and skills are available to build the solution.
• Operational feasibility: Evaluates whether the solution will work within existing processes and be easy to maintain and use.
• Economic feasibility: Analyzes costs (hardware, software, personnel) and expected benefits to confirm a positive return on investment.
• Legal feasibility: Checks compliance with regulations, data protection laws, licensing and ethical standards.
• Schedule feasibility: Assesses whether the project can be completed within the required timeframe.
• Cultural and political feasibility: Considers organizational culture and potential internal or external resistance.
• Market feasibility: Examines customer demand, competitive landscape and market fit.
• Resource feasibility: Confirms that sufficient human, financial and technical resources are available.

Each of these dimensions provides a different lens for evaluating whether the project should proceed.

Conducting a Feasibility Study

A typical feasibility study follows these steps:

1. Information assessment: Clarify the project’s goals, constraints and success criteria.  Establish why the project is being considered and what problems it aims to solve.
2. Information collection: Gather data about technical options, operational processes, costs, timelines, legal requirements, market conditions and resource availability.  Interviews, surveys and research help build a complete picture.
3. Report writing: Compile findings into a feasibility report that outlines the current state, potential solutions, constraints, benefits and risks.  Include recommendations and highlight any assumptions.
4. Summarize and decide: Present the report to stakeholders.  Decide whether to proceed as proposed, modify the scope or cancel the project.  Use the report’s insights to identify risks and plan mitigations.

The feasibility study not only determines viability but also reveals risk factors and alternative solutions.  Automating data collection and analysis can save time and ensure consistency across multiple feasibility assessments.

Integrating Risk Management, RIDAC and Feasibility Studies

Risk management, RIDAC and feasibility studies complement one another.  During discovery:

• Conduct a feasibility study to understand whether the project is worth pursuing.
• Use risk management techniques to identify threats uncovered by the study and plan mitigations.
• Implement RIDAC to track risks alongside issues, decisions, assumptions and changes as the project evolves.

Automation tools can streamline these activities by scheduling stakeholder interviews, capturing responses, generating reports and maintaining logs.  By reducing manual effort, teams can focus on analysis and decision making rather than administration.

For a broader overview of how discovery fits into your project lifecycle—covering scoping, requirements gathering and stakeholder alignment—see our Ultimate Guide to the Project Discovery Phase.

Conclusion

Managing risks and conducting feasibility studies are essential to successful software projects.  A clear, systematic approach to identifying threats, evaluating viability and planning mitigations sets the stage for informed decisions and efficient execution.  Incorporating RIDAC provides a holistic view of all events that can affect your project and ensures that nothing falls through the cracks.  By combining these practices and leveraging automation, your team can reduce uncertainty, align stakeholders and confidently move forward.

Risks & Feasibility Studies Frequently Asked Questions

1. Why are risk management and feasibility studies critical in software projects?

• They help teams uncover potential problems and determine whether a project is viable before significant resources are committed.
• By assessing risks and feasibility early, organizations can plan mitigations, adjust scope and avoid costly surprises.
• A strong foundation in risk and feasibility ensures projects align with business goals and delivers value.

2. What kinds of risks are common in software development?

• Projects often face risks like scope creep, budget overruns, unrealistic schedules and communication breakdowns.
• Vendor reliability and product quality are also common areas of concern.
• Identifying these risks early allows teams to develop targeted strategies to reduce their impact.

3. How does the RIDAC approach improve project oversight?

• RIDAC stands for Risks, Issues, Decisions, Assumptions and Changes; it provides a framework to log and track all items that can affect the project.
• Keeping a RIDAC log ensures transparency, assigns ownership and maintains a clear history of how challenges were handled.
• Regularly reviewing the log helps teams stay aligned, address open items promptly and learn from past decisions.

4. What are the main types of feasibility studies?

• Feasibility studies examine technical, operational and economic factors to see if a project is practical and profitable.
• They also consider legal constraints, schedule requirements, cultural and political factors, market demand and resource availability.
• Evaluating each of these areas gives a holistic picture of whether the project should proceed.

5. How can automation support risk management and feasibility analysis?

• Automated tools streamline data collection, schedule interviews and organize information into structured reports.
• They centralize risk registers, RIDAC logs and feasibility findings, making them accessible to all stakeholders.
• By reducing manual effort, automation lets teams focus on analysis, decision making and strategic planning.