Reconceptualizing design risk management as a learning strategy

Abstract

We observed how risk management (RM) is perceived to hinder radical innovation in companies. RM is perceived to kill good ideas too early before they were explored thoroughly or leads to cancellation of projects after several years of development time due to critical risks. This paper contributes an empirical investigation and show that a multitude of value propositions for RM exist, among them innovation. The paper proposes 5 practices to reconcile risk management and innovation, and reconceptualise risk management as a learning strategy that supports innovation.