Innovation vs Risk Management
Sundeep Madichatti
IST 7100 Week 3
Due March 25th, 2015
Wilmington University
Innovation vs Risk Management – which should take priority?
Information Technology is constantly under a speeding process like implementing and reinventing entire business processes as large scale IT transformations have always prove to be risky. These transformations may sooner or later can run into trouble, as new innovative technologies can be immature as they are never tried on real time systems. To manage these risks, companies need to set separate protocols with their partners, so that they can effectively deal with the situations as they have promising technology but they tend to have weak links in large scale, multilayer transformations. In these cases, companies need to think beyond normal relationships, as they need to look at the wider options so that they can get greater stake in the future process so that companies can address if they find any gaps to succeed with their capabilities in projects (Jens Niebuhr, 2011). Furthermore, both the issues like innovation and risk management were considered resonant, in order to further develop the compatibility of these two areas set of rules were considered to increase the flexibility under great pressure so that resilient organizations can be created that can have improved efficiency to meet targets while delivering projects. The main rules were
1. Taking risks and innovative culture that creates a supportive environment, while balancing the guidelines and governance rules.
2. Motivate and at the same time giving incentivize behaviors
3. Assessing past scenarios and improving them to make a process even better
4. Delivering the goods (National School Of Government, 2006).
Clearly, not every organization is same, each of them are differently configured, has its own set of protocols and challenges. To combat these challenges an easy approach must be made, so that every single individual can understand the scenario of what needs to be done. A framework can be used in order to develop a right structure that creates a potential governance for business planning. The framework includes
Organization and Governance: This framework deals with strategic direction that helps in creating required responsibilities that facilitate innovation and risk management. This deals with assurance and controls to have a wide organization integration.
Innovation and Risk Approach: This framework deals with delivering optimum level performance by adopting good risk management and innovation that ensures taking good decision making.
Learning and Improvement: This framework deals with past scenarios, learning from them and others experiences and improving in new areas.
Innovation and Risk Culture: This framework deals with etiquettes of the employees and qualities, general issues (National School Of Government, 2006). Innovation is always something that deals with improving things, like enhancing the present situation that can ease the process and improving its efficiency, whereas risk management constantly undergoes new challenges and needs to create improved solutions for worst case scenarios. Risk management always plays a major impact on how a situation can be dealt so that a definite solution can be created. Every IT project has its own risks and analysts must figure out them effectively otherwise it can have a negative impact on the project. Risk management defines identifying, analyzing, anticipating and monitoring risks that mitigate negative impact on projects as these provide a detailed approach towards a project where a situation can be completely understood. There might be several steps to implement a specific plan on a project, but a basic protocol must be included to effectively implement risk management that provide and the steps are
Develop a Risk Management Plan: This particular steps include reviewing scope of the project like budgeting and scheduling internal
