How does Scrum deal with risks?
Being an Agile, iterative process, the Scrum framework inherently minimizes risk. The following Scrum
practices facilitate the effective management of risk:
1. Flexibility reduces business-environment-related risk
Risk is largely minimized in Scrum due to the flexibility in adding or modifying requirements
at any time in the project lifecycle. This enables the organization to respond to threats or
opportunities from the business environment and unforeseen requirements whenever they
arise, with usually low cost of managing such risks.
2. Regular feedback reduces expectations-related risk
Being iterative, the Scrum framework gives ample opportunities to obtain feedback and set
expectations throughout the project lifecycle. This ensures that the project stakeholders, as well
as the team, are not caught off guard by miscommunicated requirements.
3. Team ownership reduces estimation risk
The Scrum Team estimates and takes ownership of the Sprint Backlog Items, which leads to
more accurate estimation and timely delivery of product increments
4. Transparency reduces non-detection risk
The Scrum principle of transparency around which the framework is built ensures that risks are
detected and communicated early, leading to better risk handling and mitigation. . Moreover,
when conducting Scrum of Scrums Meetings, Impediments that one team is facing currently
can be deemed a risk for other Scrum Teams in the future, and that should be recognized in the
Updated Impediments Log.
5. Iterative delivery reduces investment risk
Continuous delivery of value throughout the Scrum project lifecycle, as potentially shippable
deliverables are created after every Sprint, reduces investment risk for the customer.