How to Do Risk Management in Agile Projects | Video

Some people might expect that agile projects have – or even need – no risk management. That is completely wrong. So, let’s look at how to do risk management in agile projects.

It is also easy to think that Risk Management may be completely different in Agile projects. That would be wrong too. And it would be equally wrong to think it will be just the same.

The truth is that risk management is similar and different between predictive and adaptive project management. And, there is much that traditional project managers can learn and adapt from the way risk management works in agile projects.

This video is safe for viewing in the workplace.

This is learning, so, sit back and enjoy

Adapting Your Agile Risk Management

Clearly, we need to adapt our risk management approach to the nature of our project. especially to:

• The level of risk
• The risk attitude of your customer, client, users, or sponsor
• The culture of the sponsoring organization

After all, all project management is hybrid project management!

The Process of Risk Management in Agile Projects

As you’d expect, risk management is more adaptive and emergent in agile projects, compared to traditional, plan-driven projects.

Whilst the basic process is the same, in agile projects, we typically apply that process at 2 levels:

1. Level 1: The Project level
   …an over-arching Risk Management framework
2. Level 2: The Iteration, or sprint, level
   … a process that happens at each iteration

The Steps in the Agile Risk Management Process

That process can be described in many ways. But the essence of it is:

• Identify 
• Analyze (and prioritize)
• Plan risk responses
• Take action
• Monitor & Control RM progress

How Agile Risk Management Differs from Traditional Project Risk Management

But, in addition, there are elements of risk management that differ:

1. First, the adaptability of agile projects is a response to risk – the uncertainty of the end product. Each iteration bites off a small chunk and thus limits risk. And, as risks increase, we typically reduce iteration cycle time.
2. Second, we follow the whole risk lifecycle at each sprint or iteration. This increases the focus on risk. This can be further enhanced by discussing risks at daily stand-up meetings.
3. The use of a backlog is also a risk management approach:
   • Defers high-risk tasks (especially high uncertainty) means more knowledge and greater process experience when we tackle it
   • We can use ‘Spike Stories’ to answer a specific question that can reduce uncertainty and therefore risk. A Spike story is also known as a ‘timeboxed investigation’.
4. The Sprint Reviews and Sprint Retrospectives of Scrum allow:
   • Sprint reviews can consider the impact of risks in this sprint on backlog items and their estimates
   • Sprint retrospectives can sharpen the team’s risk management practices and overall process – thus reducing risk through the project life cycle

Problems and Benefits of Agile Risk Management

There are also some real benefits (and problems) that agile working confers on Risk Management.

Problems with Agile Risk Management:

• No clearly defined risk owner/risk manager. The entire team is responsible, which could be a benefit, but can also lead to complacency among individuals
• This lack of ownership and the wider risk management benefits of the agile approach can lead to a cavalier attitude towards risk – which is, itself, a risk

Benefits of Agile Risk Management

Agile working encourages:

• Transparency – better risk identification
• Collaboration – better planning and problem solving
• Customer involvement – greater accountability, business participation, expectation management
• Stable teams – learn better time and cost estimating

Recommended Videos

Carefully curated video recommendations for you:

• What is Project Risk Management? | Video
• Project Risk Management – How to Manage Project Risk | Video
• How to Create a Risk Management Plan | Video
• 5 Ways to Remove a Risk Entirely | Video
• What to Put in Your Risk Register (Risk Log) | Video
• What is Agile Project Management? | Video
• Introduction to Agile Scrum Project Management – with Alexis Allen | Video
• What is the Agile Triangle – Value, Quality, and Constraints | Video

Recommended articles

• Ultimate Guide to Project Risk Management
• 10 Step Risk Management Kick-off for Your Project
• Indispensable Guide to the Sources of Project Risk
• The Project Manager’s Guide to Simple Risk Analysis
• Risk Response Strategies: Full & Revised Roundup
• What is Agile and Why is it Important to Project Managers?
• Agile vs Waterfall: Which one is Right for Your Project?
• Agile Principles: The 12 Keys to Adaptive Project Management

What Kit does a Project Manager Need?

I asked Project Managers in a couple of forums what material things you need to have, to do your job as a Project Manager. They responded magnificently. I compiled their answers into a Kit list. I added my own. 

Check out the Kit a Project Manager needs

Note that the links are affiliated.

Learn Still More

For more great Project Management videos, please subscribe to the OnlinePMCourses YouTube channel.

If you want basic Management Courses – free training hosted on YouTube, with 2 new management lessons a week, check out our sister channel, Management Courses.

For more of our Project Management videos in themed collections, join our Free Academy of Project Management.

For more of our videos in themed collections, join our Free Academy of Project Management.