Traditionally Software Engineering research has focused on the needs of very large corporations undertaking equally mammoth and complex development projects. Thus most tools and methods are predicated on this model. Yet by far the majority of software development is undertaken by Small to Medium Enterprises, often with little or no adherence to any SE standard process or by attempting to tailor processes intended for larger organizations. Neither of these alternatives is ideal, with both introducing new risk factors. The explosion in internet based applications has partly fuelled the move away from monolithic software development but has also introduced an entirely new set of possible risks. Indeed, the very nature of some of these applications can be described as "critical" and are therefore candidates for formal risk assessment procedures. The so-called Agile methods now offer a third alternative for the SME software developer. However, are they a solution or simply adding yet another element of risk to an already risky business? This paper examines some of the factors that contribute to making software development today such a risky proposition then discusses whether Agile methods can assist SMEs in meeting these challenges.
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