How do I coach "Delivery Leaders" on "RISK Management & Mitigation in IT projects or engagements?"
[You can watch my video - Balaji's FREE Webinar - "Pragmatic IT Delivery Management in Agile" - Complete Video - 6th July 2024]
Image Attached that sets the context of my article.
Risk is measured by the product of Impact & its associated Probability.
that is Risk = Impact × Probability
This approach quantifies the risk based on two key factors:
This approach is widely used in project management, including IT projects, as part of risk assessment and prioritization.
Based on the context of the provided image and the Agile IT project setting, here are sample connotations for the five levels of "Impact" and "Probability" as they pertain to risk assessment in Agile IT engagements:
Impact Levels (Minimal to Severe):
Minimal (1):
Connotation: The issue has negligible effects on deliverables, with no disruption to the sprint or iteration goals. Minimal rework or adjustments may be required.
Example: A minor UI inconsistency that does not impact core functionality.
Moderate (2):
Connotation: Some disruption to sprint goals, but manageable within the same iteration or a minor dependency on additional teams. A slight deviation from planned timelines.
Example: A delay in deploying a non-critical module due to a minor bug.
Significant (3):
Connotation: Noticeable impact on sprint objectives, requiring additional effort, team resources, or changes to user stories. There may be a slight delay in deliverables.
Example: An unexpected failure in a third-party API integration requiring design changes.
Extensive (4):
Connotation: A substantial impact on multiple sprint goals or major deliverables, with potential delays across iterations. Team reorganization or major scope changes may be needed.
Example: A critical data migration issue blocking the main release for multiple teams.
Severe (5):
Connotation: Project-wide or program-wide critical failure, leading to a potential derailment of key objectives. Requires immediate leadership involvement and major replanning.
Example: A complete breakdown of the CI/CD pipeline causing the inability to deliver key features on time.
Probability Levels (Very Low to Very High):
Very Low (1):
Connotation: Unlikely to occur, with minimal chances of realization given current safeguards. Regular monitoring suffices.
Example: Risk of a network outage in a highly redundant cloud environment.
Low (2):
Connotation: Some likelihood of occurrence but not expected based on current trends. Mitigation measures are planned.
Example: A delay in receiving design feedback from stakeholders.
Medium (3):
Connotation: Likely to occur, especially if proactive steps are not taken. Requires immediate attention and contingency planning.
Example: Dependency on a single team member with specialized skills for critical functionality.
High (4):
Connotation: Very likely to occur without intervention. Considered a probable issue requiring escalated focus and dedicated risk management.
Example: Risk of feature scope creep due to late-stage client requirements.
Very High (5):
Connotation: Almost certain to occur or currently manifesting. Urgent mitigation or avoidance strategies are necessary.
Example: A major security vulnerability in the codebase was identified late in the release cycle.
Coaching Guidance for Agile Managers:
Incorporating Agile Principles:
Blending Agile and Plan-Driven Approaches:
Risk Review Cadence:
By establishing these connotations and tying them to practical coaching advice, Agile managers can better track and manage risks in hybrid environments.
Back to basics - "In agile, we work on a prioritized and risk-adjusted product or sprint backlog, focusing on value delivery rather than fixed task sequences, which eliminates the need for a critical path." In agile IT projects, there is no concept of a "critical path" because agile emphasizes iterative delivery, flexibility, and adaptive planning over rigid, sequential task dependencies.
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Risk Management in Agile IT Projects
Risk management is critical in agile projects, where iterative delivery and adaptability can help manage uncertainty but also introduce unique challenges. Using the formula Risk = Impact × Probability, agile teams can prioritize risks effectively.
Types of Risks in IT Projects and How to Handle Them
Technical Risks, Project Management Risks, Requirement Risks, Resource Risks, Operational Risks, Security Risks, External Risks, and Process Risks.
In my Agile Mentorship Program (AMP), I mentor people in terms of how to mitigate each of these risks from a pragmatic standpoint.
Risk Capture Format
To communicate risks clearly, use the following format:
"There is a risk of [undesirable outcome] due to [root cause], impacting [specific project aspect]."
Examples:
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