Software quality is very important in today's competitive business environment. Managing software quality risk is an important challenge. The conventional approach to quality risk management for ongoing software processes uses analytic models and structured methodologies to enhance processes and improve quality are not systematically applied, which are major deficiencies. This new method uses Monte Carlo Simulation and Six Sigma for ongoing quality risk management. Simulation predicts quality (reliability) and identifies and quantifies the risk. DMAIC (Define, Measure, Analyze, Improve, Control), tactically applied, enhances the process and improves quality. Simulation is superior to conventional risk models. DMAIC is a verified structured methodology for systematic process and quality improvements. These synergetic and significant enhancements eliminate observed deficiencies. The method has been successfully proven and applied practically on real in-house projects. Such an application and obtained results are presented. Substantial savings, quality improvements and customer satisfaction were achieved. This CMMI® compliant method offers very important gains. Copyright © 2013 John Wiley & Sons, Ltd.