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The change in requirements while construction of a software may bring into several risks like over budget and extra schedule. The changes in requirements are considered as a high risk to fail the software projects. A good project manager always incorporates risk management paradigm to manage the risks of changing requirements. This research uses available statistical techniques to estimate the cost of risk management with respect to the changing requirement. In addition, a hybrid cost estimation model is proposed using action strategy model to counteract, mitigate and manage the risks of changing requirements. The proposed model is validated using an industrial case study in Saudi Electricity Company (SEC) to conclude the results. The results are found supportive because the proposed model shows significant improvement to estimate the costs of changing requirements as compared to the existing cost estimation models.

Proposed Risk Management Model to Handle Changing Requirements