Risk management in implementing the management innovations Cover Image

Rizikos valdymas įgyvendinant vadybines inovacijas
Risk management in implementing the management innovations

Author(s): Laura Baronienė
Subject(s): Business Economy / Management, Organizational Psychology, Policy, planning, forecast and speculation
Published by: Lietuvos verslo kolegija
Keywords: management innovations; risk; risk factors; risk management;

Summary/Abstract: While analyzing nonfiction in aspect of management of organization, it is noticed that a great many of management innovations exist. Organization’s choice of a certain innovation leads to additional aspects of risk. As it is difficult for organizations to make a decision which of management innovations should be implemented, problems arise: What mains factors determine risk while implementing management innovations? These problems were analyzed in various aspects by many academics, but factors of risk that are analyzed by separate authors are not generalized, the effect of theses factors as of complex unit for organizations which seek to implement management innovation is not grounded. The purpose of this article: to add factors of risk to classification criteria, that can be actual to organizations witch are implementing management innovations. After given conceptions of innovation are generalized several features can be extracted, therefore in order to define elements of risk while planning choice and implementation of management innovation it is referred to integration of certain features that are noticed in nonfiction. Main features of innovations (in this article – management innovations) are these: oriented towards changing old into new; appropriate usage of changes in order to seek business success; commercial application; role of changes catalyst for organization that inculcates it; new for people, groups of them or organization that is realizing or using. Generalizing presented definitions it can be proposed that risk to extent as of organization is raised purposes of organization that are not implemented. Foreseen consequences of not implemented purposes are both financial loss and loss of organization image. There are more then 40 different business risk classification criteria witch unite more then 220 risks in world wide practise. Each of mentioned classification criteria include all potential risks, but it can be maintained, that by implementing management innovations each management risk can be classified in to three risk groups: risk factors dependent on choice of management innovation; risk factors determined by conditions of environment; risk factors determined by inside factors of organization. After logical analysis of scientific literature is accomplished, it is stated that implementing management innovations evaluation of risk is condition that gives opportunity to assure competitive ability of organizations. Process of evaluation of risk becomes typical, periodically executed activity in organizations and organization opportunities to reach raised purposes depend on that activity, therefore it is particularly important to evaluate factors of all identified risk groups that could determine failure of management innovation implementation. These risk factors could be treated as a complex unit that could determine failure of management innovation implementation. Mentioned risk factors allow continuing scientific researches about topics of creation/adaptation of risk evaluation methodology. Identified risk factors are relevant for organizations representing various market segments and gives opportunity to form individual set of assessment criteria.

  • Issue Year: 17/2010
  • Issue No: 1
  • Page Range: 123-131
  • Page Count: 9
  • Language: Lithuanian
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