Cost of Failure

Cost of Failure image
A way of characterising how serious the consequences are if software defects reach production, used to inform how much investment a team should make in quality, security, and testing. 

Cost of failure is not purely financial, it also includes reputational damage, regulatory consequences, user harm, and loss of trust. A team building an early-stage prototype faces a low cost of failure and may reasonably ship imperfect software. A team building software in a regulated industry, or where defects could cause user harm, faces a high cost of failure and must structure their SDLC accordingly. 

Understanding cost of failure is a grounding principle for deciding how much quality work is appropriate in any given context.
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