Risk Exposure and Management in Software Development - A Survey of Multiple Software Startups

Context: Software startups perform many high-risk activities regarding both business and product development. Being aware of important risks and effectively managing them is important for startups, particularly in an era of a global pandemic such as this. Even though there are many studies about the failure and success factors of software companies, not much is understood about risk management for startups. Aim: Our aim is to characterize how startups identify, manage, and control different kinds of risks during their software product development. We also intend to investigate whether there is a mismatch between startups' risk exposure and their risk management approaches. Method: We designed an online questionnaire with 72 questions and collected opinions from 89 software startups in different stages. Results: we preliminarily revealed the relevant team composition, methodology, and product risks in each stage of a startup. Our findings suggest that perceived risk exposures are reduced as startups progress from early to later stages. There was no observable difference in the ways risks are managed among startups in different stages. Startups rely on team-based, informal, and unstructured methods to identify, analyze, and control their risks. Contribution: Our results have direct implications for startup founders and project managers to become effective in managing software startup risks.