How to Approach Risk Management in Scrum Framework

With its iterative approach, the Scrum framework enables teams to minimize risk and manage risks confidently. Risk can creep into various elements when managing a project and prevent you from delivering a valuable project. But it takes much more than risk awareness to head off these risks. Author: Caroline Li You need a strategy to help you manage, accept, prioritize, or transfer these risks. Enterprise risk management provides a formal and deliberate process to deal with all types of threats. Dig in as we detail how to approach risk management in Scrum and how to do it properly. What is enterprise risk management Enterprise risk management is a top-down risk management strategy to identify, assess, and prepare for potential risks that may lead a business to incur losses. ERM uses a firm-wide approach to alleviate the risks that may impact your business objectives. Enterprise risk management uses a holistic approach to launch firm-wide surveillance. It helps uncover potential risks invisible to individual business branches. ERM facilitates communication between departments to minimize risks and identify unique opportunities. The holistic approach enables the top management to make informed decisions when determining the risks, they wish to manage actively. Successful ERM strategies help companies mitigate risks in core areas, such as financial, operational, compliance, legal, security, and strategic risks. A chief risk officer identifies, analyzes, and mitigates both internal and external risks when implementing an ERM. Why ERM is Important in Project Management Incorporating ERM into your scrum process is crucial in helping you establish [...]