Want FREE Templates on Organization, Change, & Culture? Download our FREE compilation of 50+ slides. This is an exclusive promotion being run on LinkedIn.

Marcus Insights
Agile Risk Management for Software Development Compliance Challenges

Need help finding what you need? Say hello to Marcus. Based on our proprietary MARC [?] technology, Marcus will search our vast database of management topics and best practice documents to identify the most relevant to your specific, unique business situation. This tool is still in beta. If you have any suggestions or questions, please let us know at support@flevy.com.

Role: Director of Risk Management and Compliance
Industry: Software Development

Situation: Leading the risk management and compliance efforts for a software development company, where rapidly changing technology and data security are primary concerns. Internally, our processes for risk assessment are outdated and don’t align with the agile nature of software development. Externally, evolving data privacy laws and cybersecurity threats pose significant risks. Our current risk management framework is ill-equipped to handle the unique challenges of the tech sector, potentially leaving us exposed to compliance issues and security breaches.

Question to Marcus:

How can we redesign our risk management and compliance processes to be more dynamic and aligned with the specific risks and rapid pace of the software development industry?

Ask Marcus a Question

Based on your specific organizational details captured above, Marcus recommends the following areas for evaluation (in roughly decreasing priority). If you need any further clarification or details on the specific frameworks and concepts described below, please contact us: support@flevy.com.

Risk Management

With the fast pace of technological change in software, traditional Risk Management models are often too rigid. Adapt your approach to a more Agile risk management framework that integrates with your software development lifecycle.

Consider adopting iterative risk assessment processes that align with agile methodologies used by development teams. Incorporate real-time risk monitoring tools and automate compliance checks within your Continuous Integration/Continuous Deployment (CI/CD) pipelines to ensure that evolving risks are identified and mitigated swiftly. Additionally, employ threat modeling and risk workshops as part of your sprint planning to weave risk considerations seamlessly into product development.

Learn more about Risk Management Agile

Cyber Security

In the tech sector, cyber threats are a moving target, and your defense strategy needs to be dynamic. Implement layered security measures encompassing both technical and human elements.

This means not only investing in up-to-date cybersecurity technology, like advanced firewalls, intrusion detection systems, and encryption but also in regular staff training on data security Best Practices. Adopt a DevSecOps approach, where security is integrated into the development process from the beginning. This could involve automated security scanning of code and regular penetration testing to uncover vulnerabilities before they can be exploited.

Learn more about Best Practices Cyber Security


Your risk management and compliance processes must be as agile as your development practices. This involves shortening risk assessment cycles to align with sprint durations and adapting risk mitigation plans quickly based on new information.

Foster a culture where risk management is everyone's responsibility, not just a centralized function. This means enabling development teams to identify and address risks on the fly, with the right tools and authority to make decisions. Additionally, consider integrating risk management tools directly into your agile Project Management software for better visibility and tracking.

Learn more about Project Management Agile

Digital Transformation

Digital Transformation isn't just about creating new products; it's also about revamping your internal processes. Utilize Data Analytics and Machine Learning to predict and analyze risks, and blockchain for secure and transparent record-keeping where applicable.

Embrace cloud solutions for their scalability and flexibility but assess and mitigate the associated risks. Your risk management and compliance processes themselves may benefit from digital transformation, using software solutions that provide real-time dashboards and reporting to keep pace with the dynamic nature of risks in the software industry.

Learn more about Digital Transformation Machine Learning Data Analytics

Data Privacy

Evolving Data Privacy laws like the GDPR and CCPA have significant implications for software development companies. It is imperative to stay informed about the latest regulations and integrate privacy by design into your products.

Establish a robust Data Governance framework that ensures compliance while also allowing you to harness the value of the data you collect. Regular privacy impact assessments and data mapping exercises can help ensure that any personal data processed by your software is done so legally, ethically, and securely.

Learn more about Data Governance Data Privacy


Software development is often subject to various compliance standards, such as ISO/IEC 27001 for information security management, SOC 2 for service organizations, or specific industry regulations like HIPAA for health-related applications. Develop a compliance roadmap that is integrated with your agile development process, ensuring that compliance checks and balances are built into every phase of the software lifecycle.

Utilize compliance management software to track regulatory changes and automate compliance tasks where possible.

Learn more about IEC 27001 Compliance

Information Technology

Within your software development firm, the IT infrastructure must support agile practices while maintaining high security and compliance standards. Ensure that your IT Strategy includes secure development environments, robust Data Protection methods, and efficient deployment models.

Embrace technologies that enable rapid scaling and flexibility, such as containerization and cloud services, while enforcing strict access controls and monitoring to safeguard against breaches.

Learn more about IT Strategy Data Protection Information Technology


Although ITIL (Information Technology Infrastructure Library) is traditionally associated with IT Service Management, its principles can be valuable to risk management in a software development setting. Incorporate ITIL's structured approach to service lifecycle management by identifying potential risks in the design, transition, operation, and Continuous Improvement of IT services.

Leverage ITIL frameworks to ensure that compliance and risk management practices are infused throughout IT service delivery processes.

Learn more about Information Technology Continuous Improvement Service Management ITIL

Business Continuity Planning

Cyber incidents, data breaches, and system failures can be catastrophic for a software company. Develop a business continuity plan that addresses how your company will operate during and after a significant disruption.

Conduct regular Scenario Planning exercises to prepare for various risk events, including cyber-attacks and data leaks. Ensure that your company's critical data is regularly backed up, and that recovery processes are in place and tested routinely.

Learn more about Scenario Planning Business Continuity Planning

Project Management

Effective project management in software development is crucial for managing risks and ensuring compliance. Adopt project management methodologies that are flexible yet structured enough to account for risks at each stage of the project.

Use tools that provide visibility into Project Risks and allow for documentation and tracking of compliance requirements. Ensure that project managers are trained in risk identification and mitigation strategies and that they work closely with the compliance team to align project deliverables with regulatory requirements.

Learn more about Project Risk Project Management

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

How did Marcus do? Let us know. This tool is still in beta. We would appreciate any feedback you could provide us: support@flevy.com.

If you have any other questions, you can ask Marcus again here.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Additional Marcus Insights