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