week 04

Project Risk Management

• The main motivation for project risk management is to ensure a successful project outcome and reap greater benefits by having the confidence to manage risks associated with more creative solutions.
• Project risk is defined as the exposure of stakeholders to the consequences of variations in outcome.

Risks in Agile Projects

• Agile projects address some of the key risks encountered in traditional projects, such as missed deadlines and changing requirements.
• Agile projects introduce other risks, including:
  • Dependence on full business involvement
  • Small Development Team (loss of team members could cause problems)
  • Supplier failure
  • Technical issues
• Successful Agile is about preparing as much as possible in the early stages, being clear on where risks lie, and how they can be managed.

Risk Management Process

• A simple risk management process involves identifying risks, assessing risks, and addressing risks to achieve project objectives.
• Key areas of risk for DSDM include:
  • Level of business involvement and commitment
  • Team skills, ability, and availability
  • Clarity of vision without defining detail too early
  • Focus on delivering on time by varying features
• Instrumental Success Factors (ISFs) include Project Approach Questionnaire (PAQ) and Adherence to Principles.

Managing Risk

• Managing risk involves:
  • Assessing risks to DSDM process throughout the Feasibility phase
  • Collaboratively completing initial PAQ
  • Putting in place actions to remove/reduce/mitigate risks
  • Collaboratively reassessing PAQ at the end of Foundations phase
  • Driving appropriate tailoring of DSDM
• The Project Manager is accountable for effective risk management and ensuring all risks have owners.
• Solution Development Team, Business roles (Sponsor and Visionary), and other stakeholders have roles in managing risk.

Risk Management in Agile and Traditional Projects

• Traditional projects have a longer development and planning cycle, increasing complexity and individual project risk.
• Agile projects have shorter development cycles, quick delivery of increments, and testing is part of the development cycle, aiming to reduce complexity and risks.
• Alan Moran categorizes six sources of risk: Requirements, Technical, Schedule, Project (approach), Supplier, and People.
• Responding to change is crucial in project management, as projects may fail due to ineffective change management.

Explore the process of managing risks and addressing risks to project objectives using existing best practices. Learn about key areas of risk for DSDM and how to reduce risks associated with business involvement and commitment.