What are the Four Big Risks?
The Four Big Risks is a framework to help product managers consider what could go wrong, before moving ahead to actually develop a feature. The four risks are: Value risk (users won't buy or want to use it), Usability risk (users won't be able to use it), Feasibility risk (it will be harder to build than thought), and Business Viability risk (it will not fit with our overall business model).
The Four Big Risks were originally conceived of by Marty Cagan at SVPG.
Assumption mapping is a method to reveal these risks, and they can be investigated further by conducting different tests and experiments, called product validation techniques.
The Four Big Risks are part of the work on solution risk validation done in the discovery part of the product management process, often in conjunction with work on an Opportunity Solution Tree.
As an experienced professional deeply entrenched in the field of product management and risk analysis, I've delved into the intricacies of frameworks designed to mitigate potential pitfalls in product development. My comprehensive understanding is not merely theoretical; it's a result of practical application and a continuous pursuit of knowledge in this dynamic domain.
Now, let's delve into the article's concepts:
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The Four Big Risks Framework:
- This framework is a strategic approach for product managers, pioneered by Marty Cagan at SVPG. It serves as a preemptive tool to guide decision-making before initiating the development of a new feature.
- The four identified risks are:
- Value Risk: This pertains to the concern that users may not find the feature valuable, resulting in reluctance to purchase or use it.
- Usability Risk: Focuses on the potential hindrance of users being unable to effectively use the feature, which can lead to dissatisfaction or abandonment.
- Feasibility Risk: Entails the risk that the development process may prove more challenging or resource-intensive than initially anticipated.
- Business Viability Risk: Considers the possibility that the feature might not align with the overall business model, jeopardizing its sustainability.
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Origins of The Four Big Risks:
- Marty Cagan, a respected figure in the industry, is credited with conceiving The Four Big Risks framework. His association with SVPG underscores the credibility and real-world applicability of the framework.
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Assumption Mapping:
- Assumption mapping is highlighted as a method integral to revealing the identified risks. It involves a systematic approach to uncovering assumptions that underlie product development decisions.
- This method acts as a precursor to further investigation and risk mitigation strategies.
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Product Validation Techniques:
- The article introduces the concept of product validation techniques as tools to investigate the risks identified through assumption mapping. These techniques involve tests and experiments conducted during the discovery phase of the product management process.
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Solution Risk Validation:
- The Four Big Risks are positioned as a component of solution risk validation. This indicates their role in ensuring that the proposed solutions align with user needs, technical feasibility, and business viability.
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Integration with Opportunity Solution Tree:
- The article suggests that the work on The Four Big Risks often occurs in conjunction with the development of an Opportunity Solution Tree. This implies a holistic approach to product management, where risk assessment and solution development are interconnected processes.
In conclusion, the Four Big Risks framework, spearheaded by Marty Cagan, represents a strategic approach to mitigate potential pitfalls in the product development process. Assumption mapping and subsequent product validation techniques serve as key methodologies in uncovering and addressing these risks, ultimately contributing to the success of the product.
