Agile is an iterative software development methodology. Software development and deployment are two highly important areas that need super attention. More often software project fails because of the changes in the requirement or the end result as visualized by the client will be different from the one the developer thought up. This gap can cause the project to fail.
By using agile methodology the risk can be reduced. Because of the iterative development nature, intermediate releases are done for the client to evaluate and this helps in getting the client and developer team on the same page. This reduces the risk during the development.
Risk management is a huge thing in software development mainly because of two reasons, one is that the investment in IT is huge and the second reason is because of the speed of development attention should be given in the early stages or else the entire project will be a disaster.
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