Agile Methods as a Risk Management Strategy Tool–A Fintech Case Study

FinTech companies are subjected to same regulations than traditional financial organisations but due to their novelty, these organisations can experiment with unorthodox ways to strategically manage software development risk and ensure compliance with the regulations of the financial industry. Our case study presents an example of an Australian FinTech organisation, which has successfully applied Extreme Programming method as their company-wide risk management strategy tool. The Agile methods application encompasses the different layers of risk management; method, people and process. This study discusses how Agile development method practices are utilised to respond to risks and to ensure compliance. The case organisation is shown to address both the regulatory requirements as well as fulfil the bases for risk management approach and tailoring frameworks proposed in the literature. Finally, we present a theory of strategic risk management via Agile methods. This theory illustrates how method application influences other aspects of strategic risk management