When there is Risk there is Success

Minor innovations make up 85% to 90% of companies’ development portfolios, on average, but they rarely generate the growth companies seek. At a time when companies should be taking bigger—but smart—innovation risks, they are moving in other directions and the ability of organisations to take big risk as compared to 1990 and the reason for this decline is organisations tendecy to play safe so they take very little steps towards innovation and the result of this is they are not growing as they ought to be.

As I have studied there are two types of Risks Small I and Big I

Small I

It is the lower level of risk when organisations take low risk as they want to play safe game in Small I .The resultant of this Small risk is that it don't give competitionces among competitiors and it also contribute less to profitabilty.

Big I

It is higher level of risk it is new to the company or new to the world—that push the organisation into diffrent markets or innovative technologies and can generate the profits needed to close the gap between revenue forecasts and growth goals.

Two tools are present which help the organisations in assessing the results of the risk that they want to take and also helps them in predicting the future of the Risk.

RISK MATRIX
R-W-W (“real, win, worth it”)

Risk Matrix

It will graphically reveal risk exposure across an entire innovation portfolio. The risk matrix employs a unique scoring system and calibration of risk to help estimate the probability of success or failure for each project based on how big a stretch it is for the organisation.

R-W-W (“real, win, worth it”)

It can be used to evaluate individual projects. Organisation should use new and real strategies to take risk then after that it helps organisations in evaluating the win factor in the risk and in the end organisation evalute that it is worth to take risk and how it will be helpful in future.

So if any organisation wants to be successsful in future they must take risk but after strong evaluation only.

So are you ready to take BIG I .