Risks are inevitable in any software development project, but especially in Agile ones, where changes and uncertainties are frequent and expected. How can you address risks in your Agile product backlog, the prioritized list of features and tasks that you plan to deliver in each iteration? Here are some tips to help you identify, assess, and manage risks in your backlog.
A risk matrix is a tool that helps you evaluate the probability and impact of each risk, and assign a rating or color code to indicate its severity. You can use a risk matrix to prioritize the risks in your backlog, and decide which ones need immediate attention, which ones can be deferred, and which ones can be accepted or ignored. A risk matrix can also help you communicate and report the risks to your stakeholders, team members, and customers.
Another thing to consider is internal and external risks. Internal risks are within the organization. Like low quality, staff leaving, etc. External risks are competitors, customers don’t like it, etc. The best way to tackle most external risks is to have a short Time-to-learn (learning fast from actual customer usage on the live product)
Risk-based testing is a strategy that focuses your testing efforts on the most critical and risky features and functions of your product. By applying risk-based testing, you can ensure that you deliver high-quality and reliable software, and avoid wasting time and resources on testing low-priority or low-risk items. You can use the risk ratings from your risk matrix to determine the test coverage and frequency for each backlog item, and adjust them as the risks change over time.
This tool is only for internal-risks. And mostly only for internal-product-risks. Which are important to manage, automate and mitigate. But you need other practices for managing the external risks.
Risk mitigation actions are the steps that you take to reduce or eliminate the negative effects of the risks in your backlog. For example, you can add more resources, change the scope, implement contingency plans, or seek expert advice. You can also use Agile practices such as user stories, acceptance criteria, definition of done, and feedback loops to ensure that you deliver value and meet the expectations of your customers and stakeholders. You should document and track the risk mitigation actions in your backlog, and review them regularly to assess their effectiveness and outcomes.
Agile emphasizes the importance of continuous feedback and embracing change. So risks are also identified in between the sprints itself and gets added to the Product Backlog. The team discusses the same with the Product Owner and based on priority and importance, decides to accept/avoid/mitigate it in the same or upcoming sprints.
One of the key principles of Agile is to embrace change and respond to it quickly. Therefore, you should update your backlog frequently to reflect the current status and changes of the risks in your product development. You should review your backlog before each iteration, and during each iteration, to identify new risks, reassess existing risks, and adjust your priorities and plans accordingly. You should also update your risk matrix, test strategy, and mitigation actions as the risks evolve and new information becomes available.
Collaboration is essential for managing risks in your Agile product backlog. You should involve your team members, customers, and other stakeholders in the risk identification, assessment, and management process, and solicit their input and feedback. You should also communicate and report the risks and their status to your team and stakeholders regularly, and use visual tools such as charts, dashboards, or boards to display the risks and their ratings. By collaborating with your team and stakeholders, you can increase the transparency, trust, and alignment of your product development, and address the risks effectively and efficiently.
Based on my experience, updating the backlog with the team present whenever possible is a win for all parties involved. The entire teams knows the backlog like the back of their hand, this creates more ownership. It also promotes transparency and collaboration within the team, as everyone has a clear understanding of what needs to be done.
Collaboration with both your team and stakeholders is the bedrock of effective risk management. As author Andrew Carnegie once wisely noted, "Teamwork is the ability to work together toward a common vision, and the ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results." Through open communication, shared ownership, and a commitment to transparent collaboration, Agile teams can navigate risks successfully and achieve exceptional results.
In my experience, visualising Risk Impact adds great value. Don't limit yourself to descriptions and tags. Utilise the power of visualisation. Assign colors to risks based on their severity, use icons to signify their nature, or even create a 'Risk Heatmap.' This instantly communicates which parts of your project are sailing smoothly and which might need a closer look.
1. Embrace Change and create a evolving mindset in your team. Rigidity hurts. 2. Move at least 2 Sprints ahead (where sprint duration = 2 weeks). Have frequent (but not unnecessary) meetings with stakeholders to control ad-hocs and their priorities. 3. Prioritize well considering and weighing the risks related to business, efforts and time. 4. Do a complete impact analysis. Have a holistic approach and try to dig in as much as possible in PBIs so that any unanticipated risk can be minimized. 5. Use CAPA - Corrective and Preventive Action - Template to rank and mitigate risk. 6. Enjoy during positive risks and let not negative risks demoralize you.