Innovation and Risk Management
“If you don’t take a chance, you don’t stand a chance”. That old adage is true for all innovators who want to succeed today. But how do you take a chance on a new product or service while still maintaining the ongoing stability of your personal or corporate well-being.
In a new study, over 1,500 executives were surveyed about how risk management programs effectively help to manage innovations. In its 2018 Risk in Review Study, PwC found five key ways organizations successfully embrace risk for higher rewards including:
- Early risk assessments
- Utilizing several approaches to manage exposures
- Adjusting risk appetites
- Embracing new skills, competencies and tools
- Measuring and monitoring effectiveness
The study describes how an integrated risk management program delivers measurable results. For instance, the study revealed that organizations that have a robust program:
- Create new products or services or enter a new industry (57% to 21%)
- Implement technologies to develop new products or target new customers (57% to 18%), and
- Implement technologies to materially improve existing products or customer experience (56% to 20%).
For more insights about the value of integrating risk management into your business, the PwC 2018 Risk in Review Study is a “must read” >>