Software Development Risks

Managing Software Development Risks in an Agile Ecosystem

There are risks associated with every kind of IT services including software development. These risks depend on various

There are risks associated with every kind of IT services including software development. These risks depend on various factors associated with the project – primarily its nature and intended purpose. The risks can be categorized based on their traits as well.

Many development companies adopt Agile methodologies to address or avoid some of these risks. But some risks are still prevalent even in Agile ecosystems due to various reasons that include process failures, unexpected changes, planning mistakes etc.

In this blog, we will explore a few types of software development risks in an Agile environment, starting with:

Budget risks

Budget risks are perhaps the most common as a project can go over budget due to a number of reasons. When developing software in an Agile environment, the team will have to proceed based on certain assumptions at some point till they get new information that disproves their assumptions. Naturally, as the product development progresses, there will be changes in goals or objectives. This approach may cause the project to exceed the budget.

To mitigate budget risks, it’s better to make product decisions when the decision-makers are in the best position to do so and not earlier. They don’t have to make a detailed plan at the beginning of the project either. The progression of the product will provide them with information to make actionable decisions that do not waste time and resources. A budgeting plan that complements this approach would further reduce budget risks.

Employee risks

A company always stands a risk of losing project team members while development is underway. This can potentially delay the project. The company should always be prepared for an absent project team member. A good approach to mitigating this risk is to co-locate the project team as squads. This way the team will be able to plan together, share knowledge, overcome obstacles, and complete code reviews. The development would be seamless without knowledge silos.

Productivity risks

These type of risks are common in projects with long-term goals and deadlines. The main cause for this risk is employees slacking off due to the lack of immediacy. This risk can be avoided if the Agile environment is centered on sprints to deliver demo versions of the software within a preset timeframe.

The sprints emphasize actionable goals to the team adding a sense of immediacy. Fostering a culture where completing sprints will be considered as a good achievement is also a great approach as it helps maintain development agility.

Time risks

These risks are the result of delays in development due to various factors such as poor planning, poor adaptability, impractical deadlines etc. Lack of flexibility in development processes is one of the more common causes of time risks.

It is up to the project managers to encourage and ensure flexibility in development so the team can adapt to changing requirements better. The team should also assess the project velocity periodically and employ an optimal time management strategy during development.


Software development companies with years of experience in software development are aware of the risks involved, and how they can be avoided without compromising the integrity of product development. Practices like sprints, co-location, sufficient planning etc. can help the team minimize risks considerably.

This blog also explains how AOT handles project risks. We have never failed our clients when it comes to product quality and timely delivery. Feel free to drop us a message to learn more about our skillsets and expertise.

Image Designed by Macrovector