Page 18 - RMAI Bulletin July 2024

RMAI BULLETIN JULY 2024

Managing

Innovation

Risks

Vuthy Keo

A. Background ment new technologies to improve existing products

Innovation is a process that is undertaken to solve a or develop new ones, or enter a new market (PwC,
problem in new ways or to introduce new products, 2018). With any sort of innovations, the risks can
processes, or ideas to challenge the existing way of manifest operationally where there are faults in qual-
approaching a problem. Innovation is an integral part of ity or requirements, or commercially where the cus-
everyday life and an integral part of businesses. Com- tomer base is not attracted, or financially where the
panies that embrace innovation such as Apple and Tesla innovation project is unsuccessful, and investment is
have seen tremendous success by differentiating them- lost ("The risks and rewards of innovation", 2021).
selves and staying relevant in the market (Purcell, 2019). Hence, it is crucial that these risks are managed to
However, with innovation comes risks. Risks are inher- ensure businesses can continue to pursue growth. Ef-
ent in all sorts of activities but by venturing into the ficient and effective innovation risk management can
unknowns via innovation, the risks from the uncertainty identify unacceptable risks in the earliest stage and
can be detrimental to the business. This is where risk there exists numerous frameworks, tools and strate-
management comes into play, to allow businesses inno- gies to identify and control these risks. This study aims
vate and grow within the boundaries of acceptable risks. to highlights the rising risk management topics and
useful tools and techniques for managing innovation-

B. Introduction based risks.
Businesses have looked to incorporate risk manage- C. Main discussions
ment strategies applicable to innovation-based 1. Core actions in innovation risk manage-
projects, products and services. Types of innovation
include using a new digital technology, changing an ment
organisation's talent model, strategies change, imple- Risk management can be an integral part of inno-

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