The Four Pillars of Product Risk Management

As a PM, it’s easy to focus only on the upside.

But you’ll observe that the more experienced PMs actually spend more time on the downside.

The reason is simple: The more experience you have in Product Management, the more times you’ve been burned.

The team releases “the” feature that was supposed to change everything for the product — yet everything remains the same.

When you reach this stage, product management becomes less about figuring out what new feature could deliver great value, and more about de-risking the choices you have made to deliver the needed impact.

To do this systematically, I suggest you to consider Marty Cagan’s classical 4 Risks.

1. Value Risk: The Soul of the Product

Remember Juicero? They built a $400 Wi-Fi-enabled juicer, only to discover that their value proposition wasn’t compelling. Customers could just as easily squeeze the juice packs with their hands.

A hard lesson in value risk.

Value Risk asks whether customers care enough to open their wallets or devote their time. It’s the soul of your product. If you can’t be match how much they value their money or time, you’re toast.

2. Usability Risk: The User’s Lens

Usability Risk isn’t about if customers find value; it’s about whether they can even get to that value.

Can they navigate your product without wanting to throw their device out the window?

3. Feasibility Risk: The Art of the Possible

Feasibility Risk takes a different angle. It’s not about the market or the user; it’s about you.

Can you and your team actually build what you’ve dreamed up?

Theranos promised the moon but couldn’t deliver. It claimed its technology could run extensive tests with a single drop of blood. The reality? It was scientifically impossible with their tech. They ignored feasibility risk and paid the price.

4. Viability Risk: The Multi-Dimensional Chess Game

(Business) Viability Risk is the “grandmaster” of risks.

It asks: Does this product make sense within the broader context of your business?

Take Kodak for example. They actually invented the digital camera but failed to adapt their business model to this disruptive technology. They held back due to fear it would cannibalize their film business.

This systematic approach is the best way I have found to help de-risk big launches.

How do you like to de-risk?

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