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Re: [scrumdevelopment] Measuring business value

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  • Paul Hudson
    ... Is it? The one I ve never had a good answer for is when the benefit is risk reduction or mitigation An analogy may be buying fire insurance. On an
    Message 1 of 8 , Aug 3, 2012
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      On 3 August 2012 19:18, Derek Neighbors <derek@...> wrote:
      Monetary is pretty straight forward.

      Is it? The one I've never had a good answer for is when the benefit is risk reduction or mitigation

      An analogy may be buying fire insurance. On an expected-loss basis, it's never worth it (as the insurer makes money by charging customers more than the average loss). So you need to look at something less direct... If anyone has suggested reading on this, I'd like to hear it.

      How do you value a change that should reduce the risk of app failure by X%?

      Also, the idea that the value of, say, availability is period of outage * value of s/w per hour is very simplistic. If email goes down for 30 minutes, probably little or no damage is done to most organisations. 1 day is a lot more than 16 times worse....

      Paul
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