From Identification to Budget Allocation: A Novel IT Risk Management Model for Iterative Agile Projects

The increasing advancement in information technology industry is compatible with the changing nature of the world. While software is important for all facets of the modern world, software development itself is not a perfect process. Agile software development methods have recently emerged as a new and better way of developing software as compared to traditional methodologies. These methods are developed to make prompt changes in a constantly changing world.The more modern the technology and the methods are, the newer the risks that must be properly controlled and managed. Therefore, focusing on risk management process in Agile projects will lead to applicable results. Due to the high failure rate in IT projects, increasing the focus on risk management seems essential. This research is carried out to explore and determine a new risk management model for iterative Agile projects. The model starts by risk identification of each iteration based on the historical data and ends with risk budget estimation and allocation. Therefore, a comprehensive IT risk management process will be performed based on Agile approach. The risk estimation is by mathematical formulae which makes the calculation defensible and reliable.