Technological risks may take a wide variety of forms, and vary from simple risks to highly complex instances involving the interrelationship of many divergent technologies. Some relatively simple examples of technological risk are:
The element of risk in the incorporation of new technologies arises from the simple fact that they are new, and likely to be unfamiliar to the majority of development personnel. A period of learning will be necessary, and the probable length of this period must be assessed in the light of required development schedules. Technological risk is always greater where new techniques and procedures must be evolved in order to support and exercise the new technologies, since elements of managerial risk are then involved. Simple technological tools are relatively easy to learn and use, but techniques for their effective employment are often learned over a longer period.
The decision as to whether to utilize new technologies in a development project must be based upon the question of whether the development organization possesses the requisite skills to effectively exercise the new technologies, or can acquire such skills within the timeframe of the development project, without adversely affecting the schedule and budget of the project. If the first question can be answered in the positive, there is no risk involved; if not, then it is the second question that constitutes the element of risk.
Technological risk may be mitigated by ensuring that development personnel possess the necessary skills to effectively utilize the new technologies, through the provision of relevant education. The potential benefit to be gained from the use of these technologies must be identified and quantified, in terms of enhanced application functionality, reduced development time and cost, etc. This benefit must be weighed against the time and cost involved in training personnel to a sufficient skill level in order to effectively mitigate the risk, and against the schedule and budget imposed upon the development organization.
Technological risk may also be mitigated by minimizing the managerial risk involved in the use of new technologies. If established managerial techniques can be adapted and applied to the implementation of new technologies, the use of these mechanisms may provide a greater degree of control over the development process, and help to control and reduce the associated technological risk. Thus it can be seen that technological and managerial risk are closely related and complimentary to one another.