Risk Management. BUSINESS RISK MANAGEMENT. Crisis Management. Strategic Risks, Operational Risks - Containing Negative Effects and Converting Risks Into Opportunities

Business Risk Management

Vadim Kotelnikov (VadiK), innopreneur teaching by example

Anticipate risks and prepare to win, contain negative effects, and convert risks to opportunities

For a venturepreneur, the biggest risk is not taking risks. If you venture nothing, you win nothing.

Risk is a just an easy choice between fear of falling down and a chance to take off. Risk avoidance is just an unwillingness to prepare to win.

Two Levels of Business Risks

Strategic risks require corporate leaders to think on a grand scale; these risks require strategic thinking, systems thinking, strategic planning, predictive intelligence, and strategic learning.

Operational risks are implemented at a lower level.

3Bs of Strategic Creativity

Anticipation Skills

Learning SWOT Questions

Three Types of Business Risks

Individual Risk – all trusting relationships have meaningful incentives at stake and the trusting party must understand the risks involved in the relationship.

Managerial Risk – speaks to the reality of uncertain outcomes that are associated with managerial decisions.

Organizational Risk is a characteristic of firms experiencing volatile and often unpredictable income streams.

Know Enemies of Your Business

Metaphorical Cemeteries

Enemies of Innovation

Entrepreneurial Questions

Manage Five Business Development Risks

If you create something unseen before,
prepare to address challenges unmet earlier
~ Vadim Kotelnikov

You face five risks at every stage of your business development:

① Growth risk

② Technology & production risk

③ Marketability & competing risk

④ Financial risk

⑤ Team & management risk.

Anticipate risks and prepare to win

Most big change and radical innovation projects fail because managerial challenges are very high.

InnoBall simulation game helps manage risks. It helps identify enemies, think for them, anticipate their attacks, come out with creative solutions

Risk Management: prepare to win InnobBall simulation game

Risk Management: INNOBALL - innovation brainball simulation game

InnoBall (Innovation Brainball) entrepreneurial simulation super-game helps you conquer the enemies on your way to a desired outcome, and achieve much more than your dreamed of.

"The Sword of Damocles" → Example

"Don’t forget, that business is like driving a car: you can go fast only if you know you have good brakes!" ~ Harvard Business Review

Humorous Business Plan

Financial Success

Development risk
"The more you chase money, the harder it is to catch it." ~ Mike Tatum...

Risk management strategy
"It is better to spend money like there's no tomorrow then to spend tonight like there's no money." ~ P.J. O'Rourke.

Humorous Business Plan

Success in Love

Growth risk
"A sweetheart is a bottle of wine; a wife is a wine bottle." ~ P.C. Baudeareil...

Risk management strategy
"Adultery is democracy applied to love." ~ H. L. Menken

Innovation Football as a Great Risk Management Tool

Making big changes, radical innovation project management (RPM) or international business development (IBD) ventures involve various risks.

Simulation game Innovation Football (INNOBALL) will help you not just anticipate and reduce these risks, but also turn these risks to opportunities and achieve great results!

The Biggest Risk

The biggest risk is not taking risks. If you venture nothing, you win nothing.

"Security is mostly a superstition. It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure or nothing,"

~ Helen Keller >>>

Colin Powell's 18 Lessons for Leaders

Once the information is in the 40 to 70 range, go with your gut. Don't wait until you have enough facts to be 100% sure, because by then it is almost always too late.... More

→ Entrepreneurial Leader: 4 Attributes

The Greatest Source of Risk

The greatest source of risk in any business is failure to understand dynamic needs of the customer or end user.

Managerial Risk

The logic of managerial risk applies at the level of each individual. Good managers build trusting relationships. Yet, to trust another party makes a person vulnerable to outcomes of that party's actions. Thus managerial risk creates vulnerability.

In addition, managerial decisions taken in an unknown environment result in uncertain outcomes.

→ Entrepreneurial risk management approaches can help you turn these risks into opportunities.

Project Risk Management

Project risk management analyzes the possible trade-offs between cost, schedule, and uncertainty. Risk management strategy represents some kind of rebalancing, of choosing alternative ways to deliver the same results... More

→ 10 Key Project Leader Skills

Silicon Valley Companies

Silicon Valley companies use the innovation portfolio approach to manage innovation and risks... More

What Is Risk Management? A Simple Explanation

Most innovators are successful to the extent to which they define risks and confine them.

Peter Drucker

Rely on is your own intuition and when it comes down to it, you really don't know what's going to happen until you do it.

Konosuke Matsushita

Development risk "The more you chase money, the harder it is to catch it." ~ Mike Tatum...

Risk management strategy "It is better to spend money like there's no tomorrow then to spend tonight like there's no money." ~ P.J. O'Rourke.

Growth risk "A sweetheart is a bottle of wine; a wife is a wine bottle." ~ P.C. Baudeareil...

Development risk
"The more you chase money, the harder it is to catch it." ~ Mike Tatum...

Risk management strategy
"It is better to spend money like there's no tomorrow then to spend tonight like there's no money." ~ P.J. O'Rourke.

Growth risk
"A sweetheart is a bottle of wine; a wife is a wine bottle." ~ P.C. Baudeareil...