krishna
INNOVATION vs. RISK MANAGEMENT
SAI KRISHNA PRASAD RAO JOGINIPALLY
WILMINGTON UNIVERSITY
IST-7100 (MONDAY)
Innovation vs. Risk Management- Which should take the priority The term risk management refers to the continuous process of identifying, assessing or analyzing, minimizing exposure to the effects of uncertainty on the objectives. Objective in our case is innovation, which can be defined as designing better solutions to meet new challenges or requirements; innovation is also means for economic growth (Vargas Hernández, 2015). To an innovator, the risk assessor may look more like a policeman who tends to overlook the risks involved in the innovation, these could arise from the losses or liabilities related to intellectual properties, shifting market requirement, raw material availability, regulations and other related financial risk. It’s often seen that the risk management is a necessary checkpoint for a company but at the same time it also can act as uber guardian averse to any risk, which at times can stifle the innovation. Hence this question is necessary to answer whether risk management should take priority over the innovation or vice versa. Innovation is necessary for development of any society or generation. We are progressive animals. Need is mother of invention and to find proper solution to the problem requires exploring various possibilities from technical, social, economic angles. However question one need to ask is whether innovation is all good or is there a negative side of the innovation also. In reference to topic of my discussion, I would propose that risk management should take priority over the innovation. To illustrate my point, I would like to pose a hypothetical question, is innovation always good or it has its negative sides as well. Let’s take an example of innovation of nanotechnology. Today the innovation of nanotechnology has created new dimensions in the particle size which can be used in the drug delivery and
SAI KRISHNA PRASAD RAO JOGINIPALLY
WILMINGTON UNIVERSITY
IST-7100 (MONDAY)
Innovation vs. Risk Management- Which should take the priority The term risk management refers to the continuous process of identifying, assessing or analyzing, minimizing exposure to the effects of uncertainty on the objectives. Objective in our case is innovation, which can be defined as designing better solutions to meet new challenges or requirements; innovation is also means for economic growth (Vargas Hernández, 2015). To an innovator, the risk assessor may look more like a policeman who tends to overlook the risks involved in the innovation, these could arise from the losses or liabilities related to intellectual properties, shifting market requirement, raw material availability, regulations and other related financial risk. It’s often seen that the risk management is a necessary checkpoint for a company but at the same time it also can act as uber guardian averse to any risk, which at times can stifle the innovation. Hence this question is necessary to answer whether risk management should take priority over the innovation or vice versa. Innovation is necessary for development of any society or generation. We are progressive animals. Need is mother of invention and to find proper solution to the problem requires exploring various possibilities from technical, social, economic angles. However question one need to ask is whether innovation is all good or is there a negative side of the innovation also. In reference to topic of my discussion, I would propose that risk management should take priority over the innovation. To illustrate my point, I would like to pose a hypothetical question, is innovation always good or it has its negative sides as well. Let’s take an example of innovation of nanotechnology. Today the innovation of nanotechnology has created new dimensions in the particle size which can be used in the drug delivery and
References: Keizer, J. A., Halman, J. I. M., & Song, M. (2001). From Experience: applying the risk diagnosing methodology. Journal of product innovation management, 19, 213-232. Royalsociety.org,. (2009). Reaping the benefits: Science and the sustainable intensification of global agriculture | Royal Society. Retrieved 20 March 2015, from https://royalsociety.org/policy/%20publications/2009/reaping-benefits/ Vargas Hernández, J. (2015). Risk or Innovation, Which One Is Far more Preferable in Innovation Projects?. Ccsenet.org. Retrieved 20 March 2015, from http://www.ccsenet.org/journal/index.php/ijms/article/viewFile/5994/4808