An agile team discovers a new risk and identifies that its impact may be severe.

The correct answer is B — Balance risk reduction and value-adding activities in the next iteration.

Agile recommends actively managing risks as part of iteration planning. While delivering customer value remains a top priority, severe risks should be mitigated as early as possible. The team should consider allocating capacity in the next sprint to reduce risk while still maintaining delivery focus.

PMI Agile Practice Guide states:

“Agile teams incorporate risk mitigation work into iteration planning. Teams should prioritize high-impact risks early and balance risk management with delivering customer value.”

(PMI Agile Practice Guide, Section 7.3 – Agile Risk Management)

Mike Griffiths supports this:

“Agile does not separate risk management into a different process—it is embedded within backlog prioritization. Addressing risk early can prevent downstream impacts, and teams must weigh risk vs. value regularly.”

(PMI-ACP Exam Prep, Chapter 6 – Problem Detection and Resolution)

Incorrect options:

A disrupts current iteration goals and contradicts agile time-boxing.

C ignores the severity of the risk.

D escalates unnecessarily—agile promotes team-level decision-making first.

Answer: B

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