OPPORTUNITY FOR MANAGING PROJECT RISK BY APPLYING AGILE METHODOLOGY
Authors: Parashkevova Evelina 
Published: December 2021

The article focuses on issues related to agile project management, the integration of risk management into the project management process, and some contributing points of the agile methodology to improving the effectiveness of the project management process. Risk is presented as an unforeseen event that may have a positive or negative impact on project goals. The main advantage of agile risk management in a project is highlighted. The article also presents basic standards and methodologies for project management. Opportunities for applying the values and principles of flexible methodology in the risk management process are outlined. The main advantages of the flexible project management methodology are presented, focusing on the relationship with risk management. The introduction of agile project management as a methodology in organizations poses new challenges to risk management. Although some of the conventional methods can be applied, it is important to take into account the specific characteristics of the agile methodology. This implies a more dynamic application of a set of methods and techniques for identifying, analyzing, assessing, and affecting risk. An important factor in managing risk when applying the agile methodology is to identify the positively influencing unforeseen factors and accordingly to benefit from their favorable effects on project and organizational goals, i.e. a wider definition of risk associated with unforeseen circumstances, positive or negative, which arise in the course of project implementation is adopted here. This unconventional view allows for a higher value of project outcomes and effects as a consequence of emerging risks that have a positive impact on project goals. It is not possible for risk management to be a process independent of the project management process. Although in conventional risk management methodologies management is part of the project management, with agile methodology, things are slightly different. This is because agile project management methodology does not apply standardized processes and procedures. It leaves a project to develop naturally and in line with stakeholders’ requirements. Risk management consists of a particular sequence of activities applicable to both traditional and agile project management. The process includes as follows: risk identification, assessment and analysis, developing response strategies, monitoring and reporting. These activities, performed in a short timeframe and towards specific, simple and clear tasks, lead to significant reduction of the negative project risk and contribute to the occurrence of positive unforeseen events. It is important to note that risk management is thus simplified and becomes a much easier to be understood and properly implemented process by anyone involved in project implementation. Reducing the cost of risk management is a major asset of agile project management. Preliminary control is sporadic, with emphasis on early diagnosis and agile response. All this makes the agile project management methodology and risk management in a dynamic project environment more and more up to date.