A Novel Multi-Criteria Based Risk Management Approach for Agile Projects

Authors

  • Saeed Khaji Departmant of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran.
  • Seyed Farid Ghannadpour * Departmant of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran. https://orcid.org/0000-0002-5956-1262

https://doi.org/10.48314/anowa.v1i3.46

Abstract

One significant factor impacting projects is the neglect of risk management for internal and external risks, which can lead to delays in scheduling, cost overruns, or even complete project failure. This research reviews existing literature to explore the differences between agile and traditional approaches, focusing on short iterations, flexibility, risk response strategies, and team involvement. Additionally, it identifies and categorizes the key risks affecting agile projects into three distinct groups. A team of 13 experts, including academic professors, project managers, and agility specialists, was assembled to facilitate the research. These experts completed a questionnaire regarding 19 selected risks encompassing all relevant aspects. Initially, the risks were ranked using the fuzzy Decision Making Trial and Evaluation Laboratory (DEMATEL) Network Analysis Process (DANP) technique. The final ranking was established by evaluating the results of the DANP method and the probability of occurrence and impact of each risk. The ranking results indicated that the dimension of "common organizational and environmental risks," which encompasses risks related to "types of project delays," "management and consideration of project changes," and "trust among the team and stakeholders," holds greater importance and impact on agile projects compared to other risks. 

Keywords:

Project risk management, Agile projects, Likelihood and impact matrix, Multi-criteria decision making, Fuzzy decision making trial and evaluation laboratory network analysis process technique, Fuzzy sets

References

  1. [1] Tavares, B. G., Da Silva, C. E. S., & De Souza, A. D. (2019). Practices to improve risk management in agile projects. International journal of software engineering and knowledge engineering, 29(03), 381–399. https://doi.org/10.1142/S0218194019500165
  2. [2] Tavares, B. G., Keil, M., da Silva, C. E., & de Souza, A. D. (2021). A risk management tool for agile software development. Journal of computer information systems, 61(6), 561–570. https://doi.org/10.1080/08874417.2020.1839813
  3. [3] Hammad, M., Inayat, I., & Zahid, M. (2019). Risk management in agile software development: A survey. 2019 international conference on frontiers of information technology (FIT) (pp. 162–1624). IEEE. https://doi.org/10.1109/FIT47737.2019.00039
  4. [4] Singh, S., Madaan, G., Singh, A., Sood, K., Grima, S., & Rupeika-Apoga, R. (2023). The AGP model for risk management in agile IT projects. Journal of risk and financial management, 16(2), 129. https://doi.org/10.3390/jrfm16020129
  5. [5] Shrivastava, S. V., Rathod, U. (2019). A goal-driven risk management approach for distributed agile development projects. Australasian journal of information systems, 23. https://doi.org/10.3127/ajis.v23i0.1843
  6. [6] Shrivastava, S. V., & Rathod, U. (2014). Risks in distributed agile development: A review. Procedia-social and behavioral sciences, 133, 417–424. https://doi.org/10.1016/j.sbspro.2014.04.208
  7. [7] Elzamly, A., Hussin, B., & Salleh, N. M. (2016). Top fifty software risk factors and the best thirty risk management techniques in software development lifecycle for successful software projects. International journal of hybrid information technology, 9(6), 11–32. http://dx.doi.org/10.14257/ijhit.2016.9.6.02
  8. [8] Charles, J. (2024). Prioritization of risks in Agile Software projects through an analytic hierarchy process approach. Procedia computer science, 233, 713–722. https://doi.org/10.1016/j.procs.2024.03.260
  9. [9] Simon, D., & Reicher, R. (2024). The importance of continuous organizational project risk management and the value of project management certificates in the customers’ eyes. International journal of engineering and management sciences, 9(1), 51–68. https://doi.org/10.21791/IJEMS.2024.002
  10. [10] Annunziata, G., Lambiase, S., Palomba, F., & Ferrucci, F. (2024). Serge-serious game for the education of risk management in software project management. Proceedings of the 46th international conference on software engineering: Software engineering education and training (pp. 264–273). ICSE. https://doi.org/10.1145/3639474.3640085
  11. [11] Venczel, T. B., Berényi, L., & Hriczó, K. (2024). The project and risk management challenges of startups. Acta polytechnica hungarica, 21(2), 151–166. https://acta.uni-obuda.hu/Venczel_Berenyi_Hriczko_142.pdf
  12. [12] Sundararajan, S., Bhasi, M., & Vijayaraghavan, P. K. (2014). Case study on risk management practice in large offshore-outsourced Agile software projects. IET software, 8(6), 245–257. https://doi.org/10.1049/iet-sen.2013.0190
  13. [13] Bozorgzad, Z., & Shirveyehzad, H. (2016). Identifying and categorizing the success factors of agile project management. The third national conference on the development of engineering sciences. Civilica. (In Persian). https://civilica.com/doc/543716
  14. [14] Yaghoubi, S., & Dalirpour, M. (2014). Identifying and evaluating key success factors in project-oriented organizations. The first international management conference in the 21st century. Civilica. (In Persian). https://civilica.com/doc/311745
  15. [15] Barghi, B. (2020). Qualitative and quantitative project risk assessment using a hybrid PMBOK model developed under uncertainty conditions. Heliyon, 6(1). https://www.cell.com/heliyon/fulltext/S2405-8440(19)36756-8
  16. [16] Javanmardi, M., Zanjirchi, S. M., Karbasian, M., Khabooshani, A. (2011). The recognition and scrutiny relationship between organizational agility capabilities using RBF neural network for strengthening passive defense capabilities. Scientific-research journal passive defense sciences and technologies, 2(2), 71-82. (In Persian). https://www.sid.ir/fileserver/jf/30613900402.pdf
  17. [17] Ghousi, R., Kian, A. H. R., & Janinasab, M. (2020). Risk assessment of workshops at Iran university of science and technology using fuzzy FMEA. Occupational hygiene and health promotion. https://doi.org/10.18502/ohhp.v4i2.3991
  18. [18] Mohamadi, A., Maghbeli Zadeh, Z., Yaghoubi, S., & & Nahofti, J. (2014). Identification of risk factors and accident prone areas for optimal management of events in industries: Case study (Pasargad steel company of kovar in Iran). The second national conference on crisis management and HSE in vital arteries, industries and urban management. Civilica. (In Persian). https://civilica.com/doc/362830
  19. [19] Moran, A. (2014). Agile risk management. In Agile risk management (pp. 33–60). Springer. https://doi.org/10.1007/978-3-319-05008-9_3
  20. [20] Moran, A. (2015). Managing agile, Strategy, implementation, organisation and people. Cham: Springer. Springer. https://doi.org/10.1007/978-3-319-16262-1

Downloads

Published

2025-09-27

Issue

Vol. 1 No. 3 (2025): Annals of Optimization With Applications (ANOWA)

Section

Articles

How to Cite

Khaji, S. ., & Ghannadpour, S. F. . (2025). A Novel Multi-Criteria Based Risk Management Approach for Agile Projects. Annals of Optimization With Applications, 1(3), 167-181. https://doi.org/10.48314/anowa.v1i3.46

Similar Articles

1-10 of 15

You may also start an advanced similarity search for this article.