Abstract
Agile methods, although increasingly popular, often lack explicit activities for risk management. This gap can contribute to the failure of software projects, especially when the agile team has limited experience. Previous studies have emphasized the role of team experience in the effectiveness of risk management in agile projects. However, this paper argues that the team's risk tolerance profile can also significantly impact both risk management effectiveness and the overall success of agile projects. Using the Design of Experiments (DOE) method, we examined 72 agile experts with diverse risk tolerance profiles. Our findings underscored that both experience and risk tolerance profiles greatly influence risk management effectiveness. The results provide a nuanced understanding of how risk tolerance informs risk management practices in agile projects and ultimately shapes project outcomes. This research contributes to the evolving discourse on agile project success factors and offers valuable insights for teams seeking to optimize their risk management strategies.