Product risk management is different than project risk management. In many organizations and initiatives, the product risk is not in focus, no 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 fatal 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 suggest product risk management and the Business Value Oriented Project Management (BVOPM) office participate in its management.
Product risk management may include:
- Defining the product risk
- Product risk monitoring
- Product risk avoiding
Defining the product risk
The BVOPDM and BVOPM offices collaborate and work together in 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 avoiding
Avoiding a product risk issue is critical and need to be directed immediately and proactively by the project or product team members.
The BVOPM office assesses product risk avoiding, agree to its execution and may participate directly, technologically, administratively or with any facilitative matter.
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.