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.
Explore MoT
QA Leadership Summit - The AI-Native Edge: Leading the Future of QA image
QALS Summer 2026: a leadership summit to move beyond AI testing pilots and build production-ready, AI-first QA organizations - powered by the BrowserStack AI Test Platform and 25+ connected AI agents
MoT Software Testing Essentials Certificate image
Boost your career in software testing with the MoT Software Testing Essentials Certificate. Learn essential skills, from basic testing techniques to advanced risk analysis, crafted by industry experts.
This Week in Quality image
Debrief the week in Quality via a community radio show hosted by Simon Tomes and members of the community
Subscribe to our newsletter