What is a Risk-Adjusted Backlog?
A risk-adjusted backlog is a backlog that contains activities relating to managing risk in addition to the usual features associated with delivering value.
Agile projects typically prioritize the backlog based on business value or perceived needs. The Product Owner or business representative prioritizes the backlog elevating the highest value features to the top, so they get delivered first.
Taking an Economic View of Decision Making
Prioritizing based on business value is an example of the lean concept of 'Taking an Economic View of Decision Making.' In deciding which feature to develop first, those with the highest economic value are selected. Taking an economic view of decision making has a couple of advantages.