This paper proposes a new mathematical model for estimating the cost of explicit Agile software development risk management with its Impact Benefit s (savings/profits). This is necessitated by the fact that despite the increase in the need for managing risks explicitly in medium-to-large scale agile software development projects presently, there are no known ways to estimate explicit risk management costs/benefits. With the proposed model, explicit risk management procedures alongside with risk management estimation techniques is made known to Stakeholders who will be able to make the right decisions on risk management costs and its impacts as well as when to utilise implicit or explicit risk management. The proposed system proves to be feasible and dependable and is evidently capable of enhancing the agile methods for use for all sizes of software projects while still maintaining the swiftness of the agile process.

Risk management is the systematic process of controlling risks and it is critical to the success of all software development projects. Agile software development methodologies by the inbuilt features utilized, control risks. However, this does not work for all cases of software development projects and supplementary means may need to be applied. This can be addressed by introducing an intentional and formal way of managing risks in the agile environment. Explicit risk management promises numerous benefits if properly implemented. This study intends to review and deduce based on the risks identified, the relevance and benefits of formally managing risks in agile software development projects. To achieve the aim of this study, the researcher reviewed risk management procedures in a typical agile setting as well as research that exposed the insufficiency of the inherent risk management process in agile projects and the identified risks. Related research papers from peer-reviewed journals and other reliable sources were reviewed to extract risks that occurred using agile without explicit risks management. The study inferred that some risks do exist that occurred with the introduction and use of the agile method itself. Also, there could be risks that surface when the project size exceeds a limit. Thus, managing risks explicitly will go a long way to address such risks. Consequently, the researcher was able to deduce the relevance and benefits of implementing explicit risk management in an agile software development project. This study showed that it is beneficial to incorporate formal risk management procedures in agile software development when mega software projects are being developed. However, to maintain the agility of the agile methods which happens to be a major benefit of the utilization of agile methods, more research is needed to further explore explicit risk management in the agile environment without violating the swiftness in the agile settings.