Risk Management in Agile Software Methods

Project risk is the problems, which have not happened yet, that could cause some loss or threaten the success of the project, whereas risk management is the application of appropriate tools and procedures to contain risk within acceptable limits. Risk management is the application of appropriate tools and procedures to contain risk within acceptable limits. In this paper, the authors apply risk management to software development that uses extreme programming approach. A risk tool is designed and developed using Microsoft Excel. The tool is simple to use and would help risk analysis of the twelve practices of extreme programming. The tool has been used and experimented with. Information such as project budget, risk management budget, cost of controls, SLE, ARO have been entered into the tool to analyze the priority practices in order to decide which practice must be dealt with first.