How to Do Risk Management in Agile Projects

TL;DR

Risk management in agile and predictive project management is both similar and different, requiring adaptability and a focus on iteration-based risk management.

Transcript

some people might expect that agile projects don't need or don't use risk management it would be equally easy to think that risk management in agile project is completely different to the way we do it in predictive projects that would be wrong too as would the assumption that risk management in agile projects is just the same as in predictive proje... Read More

Key Insights

• ✳️ Risk management in agile and predictive project management is both similar and different, requiring adaptability and a focus on iteration-based risk management.
• 📽️ Agile projects have a more adaptive and emergent approach to risk management, evolving throughout the project to meet the needs.
• 📽️ Risk management in agile projects occurs at both the project level and within each iteration or sprint.
• 📽️ The risk management process in agile projects follows a five-step recursive process: identification, analysis, planning, implementation, and monitoring.
• 📽️ Agile project management adapts to uncertainty and risk by breaking down the project into iterations and reducing the risk taken in each cycle.
• 😤 Agile project management enhances focus on risk through small teams, communication, collaboration, and daily discussions.
• 😒 The use of backlogs in agile project management helps defer high-risk activities and investigate uncertainties through spike stories.
• ✳️ Sprint reviews and retrospectives in agile projects allow for considering the impact of risks, sharpening the team's ability to manage risks, and reducing risk throughout the project's lifecycle.
• 👥 Agile project management encourages transparency, collaboration, customer involvement, and the use of stable teams, which benefit risk identification, planning, problem-solving, and managing expectations.
• ✳️ While agile working offers benefits to risk management, the lack of a clearly defined risk manager or owner and the potential for complacency and a cavalier attitude to risk can be challenges.

Questions & Answers

Q: How does risk management differ between agile and predictive project management?

Risk management in agile projects is more adaptive and emergent, with a focus on evolving throughout the project. In predictive project management, risk management is typically planned out right from the start.

Q: What is the risk management process in agile projects?

The risk management process in agile projects follows a five-step recursive process. It starts with identifying risks, followed by analyzing and prioritizing them. Then, a plan is created to manage the risks, which is implemented and monitored. The process may cycle back to create new plans and take additional action.

Q: How does agile project management adapt to uncertainty and risk?

Agile project management tackles uncertainty and risk by adapting and learning as it progresses. By breaking down the project into iterations, each with a smaller chunk of requirements, the risk taken in each cycle is limited. Agile teams may also reduce iteration cycle times as risks increase.

Q: How does agile project management enhance focus on risk?

Agile project management uses small teams with high levels of communication and collaboration. This enhances the team's focus on risk, which is further enhanced by discussing risks at each daily stand-up meeting.

Summary & Key Takeaways

• Risk management in agile and predictive project management can be similar and different, depending on the nature of the project and its characteristics.

• Agile projects have a more adaptive and emergent approach to risk management, evolving throughout the project.

• Risk management in agile projects occurs at both the project level and within each iteration or sprint.