Four Risks Framework

Every solution carries four risks: value, usability, feasibility, and viability

Christian Idiodi
The essence of product management | Christian Idiodi (SVPG)

Four Risks Framework

"Every time you solve a problem, there's inherent risk involved. There's the risk of will people buy this or will they choose it or will they choose to use it, which is all a value type of risk. There's the risk of can they use it, which is a usability type of risk. The risk that we can build it to have the skills to build it or the time to build this, that's a feasibility risk. And the risk of it working for our business, which is a viability risk." - Christian Idiodi

What It Is

The Four Risks Framework is a core SVPG (Silicon Valley Product Group) framework for categorizing the risks inherent in any product solution. Every solution your team considers carries four distinct types of risk that must be addressed—and each risk has a primary owner on the team.

This framework explains why product management exists and why it's a team sport: you need different expertise to tackle different risks.

How It Works

The Four Risks

Risk Question Primary Owner
Value Will people buy/choose/use this? Product Manager
Usability Can they figure out how to use it? Designer
Feasibility Can we build it with our skills and time? Engineer
Viability Does it work for our business? Product Manager

Why PMs Own Value and Viability

Product managers are held accountable for results because they own two critical risks:

  • Value: Ensuring customers will actually want what you build
  • Viability: Ensuring the business can support and profit from it

This is why "if everything goes great, it's a great team effort, but if everything goes wrong, they blame the product manager."

The Most Overlooked Risk

Value is the most important and most overlooked risk.

Why it gets overlooked:

  • Teams are often given roadmaps of features to build (assumes value)
  • Usability testing validates that users can use it, not that they will buy it
  • "Just because somebody can use your product doesn't mean they will buy it"
  • "What people say is often different from what they do"

How to Apply It

  1. For every solution, explicitly assess all four risks

    • Don't assume value because a stakeholder requested it
    • Don't skip viability because you're excited about the technology

  2. Match risk to owner

    • PM leads value and viability discovery
    • Designer leads usability discovery
    • Engineer leads feasibility assessment

  3. Prioritize value risk

    • Start discovery with value—everything else is wasted if no one wants it
    • Validate that customers will buy/choose/use before investing heavily

  4. Beware the "check the box" trap

    • Running a usability test doesn't validate value
    • High NPS scores don't prove people will pay
    • Stated preferences don't predict behavior

When to Use It

  • Starting any new initiative - Map out which risks need most attention
  • Prioritizing discovery work - Focus on the highest-risk areas first
  • Team alignment - Clarify who owns which types of decisions
  • Evaluating roadmap items - Question items where value is assumed
  • Diagnosing product failures - Identify which risk wasn't adequately addressed

Source

  • Guest: Christian Idiodi
  • Episode: "The essence of product management | Christian Idiodi (SVPG)"
  • Key Discussion: (00:11:40) - Christian explains the four risks and PM's role
  • Value Discussion: (00:15:00) - Why value is most overlooked
  • YouTube: Watch on YouTube

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