Innovation Risk

Innovation Risk

Innovation Risk Jonathan Poland

Innovation is a proactive approach to business and design that aims to make significant improvements, rather than simply making incremental changes. This often requires taking bold, ambitious risks in order to achieve significant improvements or breakthroughs. Innovation is a key component of many successful businesses, as it allows them to stay ahead of the competition and continuously improve their products and services.

Why Manage Innovation Risk?

It is a common misconception that risk taking and risk management are incompatible. In reality, risk takers often rely on risk management strategies to minimize unnecessary risks and maximize the chances of success. For example, extreme sports enthusiasts may use knowledge, preparation, equipment, and training to reduce the risks associated with their activities.

Innovation often requires taking calculated risks, as it involves experimenting with new ideas and venturing into unknown territory. However, effective risk management can help innovation succeed by minimizing unnecessary risks and enabling businesses to focus on intelligent risks that have the potential to drive significant improvements. In this way, risk management can enable innovation to push the boundaries and achieve breakthroughs while minimizing the chances of failure.

Early Phase Innovation

Early phase innovation risk is typically handled by designing experiments to fail quickly, cheaply and safely. At this stage, risk management is a lightweight review of experiments to identify reputational, operational, financial, health & safety and environmental risks.

Late Phase Innovation

Late phase innovation risks typically require the due diligence of a full risk management process of identifying, assessing and treating risks. Common treatments include avoiding, transferring, sharing, mitigating or accepting risk. Innovation risk management often requires careful consideration of the precautionary principle.

Learn More
Risks of Artificial Intelligence Jonathan Poland

Risks of Artificial Intelligence

Artificial intelligence (AI) has often been depicted in science fiction as a potential threat to human life or well-being. In…

Psychographics Jonathan Poland

Psychographics

Psychographics is the study of personality, values, attitudes, interests, and lifestyles. It is a research method used to identify and…

What is a Trade Show? Jonathan Poland

What is a Trade Show?

A trade show is an industry-specific event where businesses in a particular sector showcase their products, services, and innovations to…

Information Security Jonathan Poland

Information Security

Information security is the practice of protecting information from unauthorized access, use, disclosure, disruption, modification, or destruction. It is a…

Marketing Communications Jonathan Poland

Marketing Communications

Marketing communications refers to the various forms of communication that are utilized in order to achieve marketing goals. These channels…

Sales Tactics Jonathan Poland

Sales Tactics

Sales tactics are specific strategies or approaches that salespeople use to persuade customers to buy a product or service. Sales…

What is a Business Model? Jonathan Poland

What is a Business Model?

A business model is a plan or framework that outlines how a business intends to generate revenue and profit. It…

Design Strategy Jonathan Poland

Design Strategy

A design strategy is a high-level plan that guides the overall approach to a design. It outlines the goals, principles,…

Management Levels Jonathan Poland

Management Levels

A management level is a layer of accountability and responsibility in an organization. It is common for organizations to have…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Risk Management 101 Jonathan Poland

Risk Management 101

Risk management is the process of identifying, assessing, and mitigating potential risks to an organization’s assets, operations, and reputation. It…

Relationship marketing Jonathan Poland

Relationship marketing

Relationship marketing is a type of marketing that focuses on building long-term, mutually beneficial relationships with customers, rather than just…

Commercialization Jonathan Poland

Commercialization

Commercialization is the process of introducing a new product or service into the market and making it available for purchase…

Strategic Partnership Jonathan Poland

Strategic Partnership

A strategic partnership is a relationship between two or more organizations that is characterized by mutual cooperation and the sharing…

Pricing Strategies Jonathan Poland

Pricing Strategies

Pricing strategy involves deciding on the right prices for a company’s products or services in order to achieve specific business…

Opportunity Cost Jonathan Poland

Opportunity Cost

Opportunity cost is the value of the next best alternative that is given up as a result of making a…

Ideation Jonathan Poland

Ideation

Ideation is the process of generating ideas and solutions to problems. It is a crucial step in the creative process,…

Solution Selling Jonathan Poland

Solution Selling

Solution selling is a type of sales approach that focuses on offering customers a tailored solution to their problems, rather…

Channel Strategy Jonathan Poland

Channel Strategy

A channel strategy refers to the plan an organization uses to reach and interact with its customers. A channel is…