Managing Risk: Risk Mitigation
While Agile and Scrum are specifically targeted at minimizing risk, this does not mean that risk to any project can be ignored. The risk management process described has much in common with most other risk management frameworks, and, if your company has adopted a specific framework, it is recommended that you align the Scrum risk management framework to that of your organisation. If you do not have a formal risk management framework in place, this is a straightforward process that has much in common with ISO 31000, although there is some variance in the grouping of the main activities, but not their content.
This is a description of the Fourth sub-process of five – namely the mitigating of risk.
Mitigating Risk – the Why and How
When the project was initiated, there was an overall vision and objectives, and the expectation that everything would work to plan. Applying risk management is a bit like being a pessimist; you assume that nothing will work to plan, and that you need to think in advance what must happen to avoid the risk becoming an issue. This action or set of activities is known as a mitigation, that will reduce or remove the risk. In other words, mitigation is “Plan B”. Earlier in the risk process you identified, assessed and prioritized risks, now you must decide on what mitigation is most appropriate for each risk. There are basically four types of mitigation, and your choice in each case is determined by the risk profile of your company. A very conservative and risk-averse company will budget for the minimum risk, while a more entrepreneurial and innovative company will be prepared to take more risk.
The Mitigation Categories and their Impact
Acceptance or Assuming of Risk
Not all risks can be mitigated. The insurance term “Acts of God” applies here, where an earthquake, tornado or other natural disaster cannot really be mitigated to any great extent. Also, not all risks need to be mitigated; if the risk has a low probability and impact, rather than spending time and money devising plans to cope with its potential occurrence, it can be agreed that, if it does arise, the impact will be accepted and absorbed by the project.
Recommended Further Reading
The following materials may assist you in order to get the most out of this course:
Course Contents
Section 1: Agile Project Management
Section 2: Using the Agile Manifesto to Deliver Change
Section 3: The 12 Agile Principles
Section 4: The Agile Fundamentals
Section 5: The Declaration of Interdependence
Section 6: Agile Development Frameworks
Section 7: Introduction to Scrum
Section 8: Scrum Projects
Section 9: Scrum Project Roles
Section 10: Meet the Scrum Team
Section 11: Building the Scrum Team
Section 12: Scrum in Projects, Programs & Portfolios
Section 13: How to Manage an Agile Project
Section 14: Leadership Styles
Section 15: The Agile Project Life-cycle
Section 16: Business Justification with Agile
Section 17: Calculating the Benefits With Agile
Section 18: Quality in Agile
Section 19: Acceptance Criteria and the Prioritised Product Backlog
Section 20: Quality Management in Scrum
Section 21: Change in Scrum
Section 22: Integrating Change in Scrum
Section 23: Managing Change in Scrum
Section 24: Risk in Scrum
Section 25: Risk Assessment Techniques
Section 26: Initiating an Agile Project
Section 27: Forming the Scrum Team
Section 28: Epics and Personas
Section 29: Creating the Prioritised Product Backlog
Section 30: Conduct Release Planning
Section 31: The Project Business Case
Section 32: Planning in Scrum
Section 33: Scrum Boards
Section 34: Sprint Planning
Section 35: User Stories
Section 36: User Stories and Tasks
Section 37: The Sprint Backlog
Section 38: Implementation of Scrum
Section 39: The Daily Scrum
Section 40: The Product Backlog
Section 41: Scrum Charts
Section 42: Review and Retrospective
Section 43: Scrum of Scrums
Section 44: Validating a Sprint
Section 45: Retrospective Sprint
Section 46: Releasing the Product
Section 47: Project Retrospective
Section 48: The Communication Plan
Section 49: Formal Business Sign-off
Section 50: Scaling Scrum
Section 51: Stakeholders
Section 52: Programs and Portfolios