Session 3.2 - Managing Risk in Strategy
Chapter 4: The Development Strategy | Duration: 1 hr
Learning Objectives
By the end of this session, you will be able to:
- Distinguish issues from risks in strategy work
- List key risk questions from Chapter 4
- Embed mitigations into cycle scope and plans
- Use strategy to reduce surprises before planning
Introduction
Strategy is incomplete without explicit risk thinking. Chapter 4 separates certain items (issues) from uncertain events (risks) and stresses handling both before detailed planning.
Issues vs. Risks
| Type | Definition | Strategy Action |
|---|---|---|
| Issue | Something certain or already known that must be handled. | Allocate time/capacity in the plan; assign ownership. |
| Risk | Something that may or may not happen; uncertain impact. | Identify, analyze probability/impact, define mitigation or contingency. |
Risk Questions to Ask (Chapter 4)
- What could prevent us from delivering the product?
- Where are the greatest uncertainties (requirements, tools, skills)?
- What assumptions are we making that could be wrong?
- What dependencies exist between components or teams?
Embedding Mitigation in Strategy
Practical Moves
- Stage risky items early in Cycle 1 to learn fast.
- Prototype unknown technologies before committing.
- Split components to isolate high-risk parts.
- Reserve contingency time for high-probability risks.
Outputs
- Risk list with owners and mitigation actions
- Cycle scope adjusted to tackle key uncertainties first
- Contingency buffers sized for issues already known
Summary
- Issues are certainties to schedule; risks are uncertainties to mitigate.
- Ask focused risk questions to surface assumptions and dependencies.
- Use strategy to place risky work early and add contingency.
- Document risks/owners so planning can allocate time and capacity.