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This Agile AudioCast is brought to you by:
“Agile” Al Smith, Jr. from AgiLean.ai
Risk Erodes Value
When high levels of risk are taken without increasing revenues or reducing costs, less value is provided to the customer. Therefore, risk management can add value to an organization. Value-Driven Delivery provides many risk reducing practices that organically minimizes a project’s exposure to risk.
The preservation or creation of value is usually the primary objective for an organization . Therefore, managing risk can add value to an organization.
This is because risk is closely related to value.
Project risk can be equated to anti-value, because the more things the can jeopardize the success of a project, that are not removed, will reduce the value of the project if they occur.
In other words, if value is the spark required to generate higher ROI for your organization, then risk is the water that can put it out.
Therefore, since risk has the potential to reduce value, we must minimize it in order to maximize value.
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