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
Cash Conversion Cycle Jonathan Poland

Cash Conversion Cycle

The cash conversion cycle (CCC) is a financial metric that measures the amount of time it takes for a company…

Public Capital Jonathan Poland

Public Capital

Public capital refers to the physical and intangible assets owned and managed by the government for the benefit of society.…

Big Picture Thinking Jonathan Poland

Big Picture Thinking

“The big picture” refers to the broadest possible perspective that can be taken in a thought process. Big picture thinking…

Division of Labor Jonathan Poland

Division of Labor

The process of dividing work into specific roles, tasks, and steps is known as division of labor. This allows individuals…

Dismissing Employees Jonathan Poland

Dismissing Employees

Letting go (aka firing) employees is a difficult and sensitive task, and it’s important to handle it with care and…

Brand Authenticity Jonathan Poland

Brand Authenticity

Brand authenticity is the degree to which a brand accurately represents itself and its values to consumers. It is the…

Business Environment Jonathan Poland

Business Environment

The business environment refers to the external factors and conditions that can affect a company’s operations and performance. It includes…

Target Audience Jonathan Poland

Target Audience

A target audience refers to the specific group of individuals or consumers that a business or organization is trying to…

Service Level Objective Jonathan Poland

Service Level Objective

An service level objective (SLO) is a standard used to measure the performance of a business or technology service. These…

Content Database

Digital Media Jonathan Poland

Digital Media

Digital media refers to any media that is created, stored, and distributed using digital technologies. This includes media such as…

Team Management Jonathan Poland

Team Management

Team management involves directing and controlling an organizational unit. Some common team management functions include setting goals and objectives, assigning…

Team Strategy Jonathan Poland

Team Strategy

A team strategy is a plan that outlines how a team will achieve its goals. Developing and implementing a strategy…

Customer Expectations Jonathan Poland

Customer Expectations

Customer expectations refer to the base assumptions that customers make about a brand, its products and services, and the overall…

Do-It-Yourself Lobbying 150 150 Jonathan Poland

Do-It-Yourself Lobbying

Yes, it is possible to lobby the government without hiring a professional lobbyist. Lobbying, in its essence, involves advocating for…

Advantages vs Disadvantages of Technology Jonathan Poland

Advantages vs Disadvantages of Technology

Technology has brought many advantages to modern society, and has greatly improved the way we live and work. Some of…

Origin of Money Jonathan Poland

Origin of Money

Money is a type of asset or object that is widely accepted as a medium of exchange for goods, services,…

Quantum Computing Jonathan Poland

Quantum Computing

Quantum computing is a fascinating and rapidly evolving field that seeks to harness the principles of quantum mechanics to perform…

Ease of Use Jonathan Poland

Ease of Use

Ease of use refers to the usability of a product, service, tool, process, or environment, and is an important factor…