How does Scrum deal with risks?

June 9, 2014

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.


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