Agile Risk Management - ISACA - Switzerland Chapter€¦ · What’s “Agile” About Agile Risk Management • Social nature and characteristics of team risk culture. • Collective

http://institute.agileriskmanagement.org/ Copyright © 2014. All Rights Reserved.

Risk Management in Agile Projects ISACA After Hours Seminar

Zurich, Switzerland 16.08.2016

Dr. Alan Moran

(IARM, Managing Director)


About the IARM

• The Institute for Agile Risk Management (IARM) is a Swiss based

institution that exists to promote the principles and practices of agile management.

• Broad range of activities including consultancy and training in topics relating to agile (e.g., risk, finance, governance).

• Publication of books and whitepapers on agile project and risk management, the agile enterprise and related topics as well as appearances at public events and conferences.

• Further details can be found at http://institute.agileriskmanagement.org/


My Biopic

http://www.linkedin.com/in/agility

Experience IT Manager with extensive experience of product development and service delivery spanning both public and private sectors. Agilist, author and Managing Director of the IARM.

Dr. Alan Moran MBA CITP CISM CRISC

AgilePM, DSDM Adv. Practitioner, Scrum PSM


Agile


Our Changing World

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WWW .com Bubble

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Fortune 1000 Replacement Rates (%)


Drivers of Change

Extended Enterprise Mass Customisation

Globalisation Digitialisation

http://www.freeimages.com/browse.phtml?f=download&id=1227226&redirect=photo





What is Agile?

Agile is a product development and project management method that is

characterised by iterative and incremental practices that seek to exploit

feedback cycles together with flexible and collaborative organisational

structures (e.g., self-organisation, cross functionality, adaptive planning) as a

mechanism for coping with change and uncertainty.


The Agile Manifesto (Preferences)

We are uncovering better ways of developing

software solutions by doing it and helping others do it.

Through this work we have come to value:

Individuals and interactions over processes and tools

Working software over comprehensive documentation

Customer collaboration over contract negotiation

Responding to change over following a plan

That is, while there is value in the items on the right,

we value the items on the left more.


Self-Organisation and Internal Autonomy


Example: Scrum


Where is Agile Found?

Agile features prominently in a number of industries (e.g., IT, manufacturing,

Fashion, Retail) and has become a hallmark of innovative organisations

seeking to cope with marketplace turbulance.


Agile Insights

• Richness of dialog promotes the understanding that enhances innovation

(i.e., feedback loops, learning effects)

• Delays erode value (e.g., writing of full up-front specification)

• Segregation introduces barries and latency (e.g., systems thinking)

• Appropriate self-organisation and empowerment improves motivation


Risk


Risk Defined

Risk is “uncertainty that matters”, i.e., uncertainty that if realised impacts one or more objectives in either a negative (i.e., threat) or a positive (i.e., opportunity) manner.


Agile and Risk

• “A project risk is something that may happen and, if it does, it will have a detrimental effect”

• Risk is “an exposure to a potentially negative outcome”

• Risk in the context of projects with “dynamic requirements” with “customers [who] need a new system by a specific date” that is a “new challenge for your software group”

• The “first iteration will immediately expose the risks, wherever they may lie”

• “more often than not high risk work items also prove to be of high value”


Sources of Project Risk*

Requirements Technical Project Approach

Schedule Supplier People

*Research based on IT project risk excl. enterprise risk which includes systemic financial and L&C risks.


Agile Risk Management


Agile Risk Management


Agile Risk Management Features

• Cyclical Cadence to Risk Management Practices

• What/Why Risk Identification Technique ( Risk Statements)

• Risk Tasking (e.g., tasks on a Product Backlog)

• Risk Tagging (i.e., marking how tasks are to be accomplished)

• Risk Burndown

• Risk Walling


What’s “Agile” About Agile Risk Management

• Social nature and characteristics of team risk culture.

• Collective ownership of risks by all members of the team.

• Cadence of risk management activities (e.g., risk workshop at the start of each iteration).

• Agile approach to tending to risks (e.g., what/why, risk tagging etc.)

• Visualization of distribution of risk and reward (e.g. risk walling, risk burndown).


Handling Contract Risk

• Agile Contracting suggests the use of risk sharing strategies

• Key agile parameters often feature in contracting (e.g., team velocity, iterations with exit clauses)

• Agile principles are often cited (e.g., ownership and client responsibility, manner in which delay erodes value, uncertainty as a learning opportunity)


Delay Erodes Value


Working with Options


Further Information

See the IARM website for further publications and articles

http://institute.agileriskmanagement.org/

Agile Risk Management - ISACA - Switzerland Chapter€¦ · What’s “Agile” About Agile Risk Management • Social nature and characteristics of team risk culture. • Collective

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