Business Risk Assessment
Business Risk Assessment
from the Oklahoma Commercialization Model
How to Properly Identify Risk
©2007 i2E, Inc. Table of Contents
©2007 i2E, Inc.
1)Overview2)Investigation Stage3)Feasibility Stage4)Development Stage5)Introduction Stage6)Growth Stage7)Maturity Stage8)Commercialization SpecialistsResources:
•The Oklahoma Commercialization Model•Angel Capital Education Foundation•Tech Coast Angels•i2E Team It’s important to analyze your business opportunity with respect to five areas of risk: product, market, business, finance andexecution risk.
This business risk assessment tool identifies the general risk for each of the five areas with respect to each stage of commercialization.
Ultimately this tool identifies the action items or milestones that should be completed to mitigate each level of risk.
Text Box: Overview©2007 i2E, Inc. Risk Profile:
The innovator has a new product or technology advancement with seemingly positive market potential.
However, the innovator lacks the financial resources and/or business expertise to commercialize the product.
Text Box: Investigation Stage©2007 i2E, Inc. INVESTIGATIONFEASIBILITYDEVELOPMENTINTRODUCTIONGROWTHMATURIT
Y
RiskAction ItemsProduct Risk:
Product may not be feasible or lacks unique qualities and cannot be protected.
•Define concept•Confirm critical assumptions•Survey state of the art•Identify critical barriers•Determine technologyMarket Risk:
Limited understanding or knowledge of the market can cause a misrepresentation of the growth and size of the market. Conduct market overview & identify:
•Pricing structure•Market barriers•Risks•Distribution channels•Trends and competitorsBusiness Risk:
Great product or technology, but a new product or technology does not translate into a great business.
•Estimate profit potential•Conduct self-enterprise and commercialization assessments•Identify professional needs•Identify capital needsFinance
from the Oklahoma Commercialization Model
How to Properly Identify Risk
©2007 i2E, Inc. Table of Contents
©2007 i2E, Inc.
1)Overview2)Investigation Stage3)Feasibility Stage4)Development Stage5)Introduction Stage6)Growth Stage7)Maturity Stage8)Commercialization SpecialistsResources:
•The Oklahoma Commercialization Model•Angel Capital Education Foundation•Tech Coast Angels•i2E Team It’s important to analyze your business opportunity with respect to five areas of risk: product, market, business, finance andexecution risk.
This business risk assessment tool identifies the general risk for each of the five areas with respect to each stage of commercialization.
Ultimately this tool identifies the action items or milestones that should be completed to mitigate each level of risk.
Text Box: Overview©2007 i2E, Inc. Risk Profile:
The innovator has a new product or technology advancement with seemingly positive market potential.
However, the innovator lacks the financial resources and/or business expertise to commercialize the product.
Text Box: Investigation Stage©2007 i2E, Inc. INVESTIGATIONFEASIBILITYDEVELOPMENTINTRODUCTIONGROWTHMATURIT
Y
RiskAction ItemsProduct Risk:
Product may not be feasible or lacks unique qualities and cannot be protected.
•Define concept•Confirm critical assumptions•Survey state of the art•Identify critical barriers•Determine technologyMarket Risk:
Limited understanding or knowledge of the market can cause a misrepresentation of the growth and size of the market. Conduct market overview & identify:
•Pricing structure•Market barriers•Risks•Distribution channels•Trends and competitorsBusiness Risk:
Great product or technology, but a new product or technology does not translate into a great business.
•Estimate profit potential•Conduct self-enterprise and commercialization assessments•Identify professional needs•Identify capital needsFinance