The following article is part of the self-preparation for the modern BVOP® Project Management Certification program.
Product risk management is different from project risk management. In many organizations and initiatives, the product risk is not in focus, not managed at all, or key roles are not even aware of it.
While the classical project risk management usually focuses on the scope, cost, legal, time, incidents, management support, and communications issues, the product risk management in the scope of the BVOP focuses on what exactly is being developed and its public presentation to the intended audience.
If the product is weak or failing, this may be considered as a more negative outcome than poorly planned and managed project risk. Defective, hard to use, or not needed product may consume much more time and resources than delays and issues in project delivery.
The BVOP suggests an integration of product risk management, which the Business Value-Oriented Project Management (BVOPM) office participates in managing.
Product risk management may include:
- Defining the product risk
- Product risk monitoring
- Product risk-avoiding
Identifying the product risk
The BVOPDM and BVOPM offices collaborate on defining product risk items.
Major product risk topics are presented in the Business Value-Oriented Product Management section of this guide.
Major product risk may include:
- Not satisfied audience needs and expectations
- Poor usability levels
- Cultural or social non-acceptance or resistance
- Poor performance measurement
- Poor cost estimate
- Poor pricing plans
- Poor quality
- No return on investments
- Inadequate marketing and sales strategies
Product risk monitoring
Monitoring product risk is a long-term initiative throughout the entire product development process and is a responsibility of all product and project teams.
Product risk items are observed and discussed during the research and development stages. Team members need to report to product management and project management roles if a risk symptom is noticed.
Product risk-avoiding
Avoiding a product risk issue is critical and needs to be directed immediately and proactively by the project or product team members.
The BVOPM office assesses product risk-avoiding, agrees on its execution, and may participate in this activity directly, technologically or administratively.
The Project risk management section of this guide contains details about defining and prioritizing risks and assigning team members to risk items.
The product risk may be a separate list of risk items or may be included in the list of overall project risk.
The following issues related to chapter "Product risk management" are included in the certification exam. The sequence of questions is presented in the table.
The data is current as of September 7, 2024, 7:24 pm
| ID | Issue | Time | Category |
|---|---|---|---|
| 0 | Product risk-avoiding | 60 sec | PM, PDM |
| 1 | Product risk monitoring | 60 sec | PM, PDM |
| 2 | Identifying the product risk | 60 sec | PM, PDM |
Comments from the BVOP™ community on “Product risk management”
Sakura Kobayashi
I commend and thank the BVOP creators for introducing product risk management as part of project management practices.
For many people, this is something new, unusual, unfamiliar, and may sound even absurd to some, but they all do not realize how many risks a product development hides. The Product Owner role should somehow cover these management needs. The product managers, for example, are usually far from these topics. Logically, this responsibility should be managed by the project management office.
I strongly support the product risk management initiatives. As a product specialist, I am very familiar with the problems that companies may encounter at a stage in their development or even at the distribution phase of their products.
Summary
Product risk management is often overlooked or not properly managed in organizations and projects. While project risk management focuses on scope, cost, time, and communication issues, product risk management focuses on the development and presentation of the product to its intended audience. A weak or defective product can be more detrimental than project delays. The BVOP suggests integrating product risk management into project management with the participation of the BVOPM office. This includes defining, monitoring, and avoiding product risks.
Product risk monitoring is a continuous task that involves all product and project teams. During research and development, product risk items are identified and reported to management. It is crucial to avoid product risk issues, and the BVOPM office may participate in this process. The guide's project risk management section provides details on defining and prioritizing risks and assigning team members. Product risk can be a separate list or included in the overall project risk list.
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