[citation needed] FRAP analyzes one system, application or segment of business processes at a time.
Risks that affect revenues can be: unanticipated competition, privacy, intellectual property right problems, and unit sales that are less than forecast.
Unexpected development costs also create the risk that can be in the form of more rework than anticipated, security holes, and privacy invasions.
[2] Combined with the decrease in the potential customer base, specialization risk can be significant for a software firm.
Methods like applied information economics add to and improve on risk analysis methods by introducing procedures to adjust subjective probabilities, compute the value of additional information and to use the results in part of a larger portfolio management problem.