How PMI-ACP looks at Risk
I started with how the PMI says risk management should be done in Agile projects. Unlike the PMBOK, the PMI-ACP does not treat risk management as a knowledge area. Instead, it integrates risk into the different practice domains and activities in Agile projects, from prioritization to delivery and problem management.
The first mention of risk management is in “Value-Driven Delivery”, treating risks as “anti-value” when considering what is important to the customer and the business. Fair enough.
Later in the same section there is a discussion of how risks need to be considered when managing the backlog – that you should schedule risk avoidance and risk mitigation activities early in the project, and explaining how to rank work by business value and risk. They suggest leveling the playing field by ranking all work (new features and changes and risks) by financial value, expressing everything in monetary terms. Risks have a negative financial return: risk impact in $ x risk probability in %. This only applies to risks that have avoidance / mitigation activities that can be scheduled and costed in the project – not for risks that are accepted or transferred.
I like the approach of managing risks the same as any other work, using the same costing and prioritization approach. It’s more consistent and more actionable than managing risks from separate lists.
Risk Management comes up one more time in Value-Driven Delivery, under a discussion of reporting tools and techniques, in this case how to create and use Risk Burn Down reports.
Then risk comes up again in Adaptive Planning – which makes sense. Risk assessment, like everything else in planning an Agile project, needs to be done incrementally and iteratively. But unfortunately there’s not a lot on how teams are supposed to identify risks in planning.
Later Griffiths suggests a collaborative game called Speedboat or Sailboat, to help the team come up with a list of risks and opportunities. This is Agile, so everything including risk management needs to be fun, and we don’t want to get people bummed out, so it’s important to spend time identifying opportunities too upfront. Team members post anchor (risk) and wind (opportunity) sticky notes around the picture of a boat on the water. Isn’t that nice…
Griffith does say that “For any project, we should engage the development team, sponsors, customers, and other relevant stakeholders in the process of risk identification. Their ideas, along with reviews of previous projects’ lessons learned lists, risk logs and industry risk profiles, should be used to identify the known and likely risks for the project.” But you can only use “lessons learned lists” and “risk logs” from previous projects if somebody on the previous project created them – and there are no actions in the PMI-ACP description of risk management to make sure that this gets done. As part of Continuous Improvement, Agile teams do conduct lessons learned reviews in each iteration, rather than waiting until the end of the project (a step that is often skipped because time and money have run out). The point is to act on lessons learned information immediately – not maybe on some other project in the future. This is good, but if people don’t save information for future use, then you can’t talk about using it in the future.
The last reference to risk management is under Problem Detection and Resolution – recommending running risk-based spikes early in the project to assess technical risks. Emphasizing that it is better to find out and fail early if you run into technical problems or limitations.
Is integrated and implicit risk management enough?
The PMI-ACP emphasizes integrated and active risk management as part of incremental planning and delivery. “Risk management should serve as a driver for work scheduling, moving high-risk activities into earlier iterations of the project and incorporating risk mitigation activities into the backlog.” Because risk-management activities are treated the same as other backlog items, work is always being done on reducing or containing risk based on negative value. But because risk management is built-in to different practice domains and into different tools and techniques, there’s no one place to understand how risk management should be done in an Agile project, and to assess whether it is being done well or not. You need to look at each practice area and how risk applies in each context. The way that it is organized makes it difficult to get your head around how risk management should be done in an Agile way – which is a source of risk in itself.
My criticisms aren’t of the study guide, which is well-written. They are of the PMI and the PMI-ACP framework. The PMI-ACP does put more emphasis on risk management than other descriptions of Agile development that I have seen so far. But it’s disappointing that the PMI did not take the opportunity to shore up a fundamental weakness in the Agile approach to development and recommend making risk management explicit, adding risk management activities to planning and reviews as a standard practice.
Some of these ideas are described in the Software Project Manager’s Bridge to Agility, a book that maps Agile development to PMI’s project management framework, and one of the books referenced in the PMI-ACP. But in the PMI-ACP as it is described, like most Agile development today, there’s too much reliance on the kind of risk management that comes for free in iterative and incremental development. This is probably enough for small teams working on simple application development projects, but that’s not the audience for PMI certification. Anyone using Agile methods on a larger scale or in high-risk development will need to look someplace else for help.
Reference: Does the PMI-ACP set the bar high enough on Risk Management? from our JCG partner Jim Bird at the Building Real Software blog.
