Risk management and value creation : an international high-tech manufacturing company´s approach to risk management and value creation in new product development projects

Abstract

Technology advancement is growing at an exponential rate. This has an impact on project organizations which innovate, manufacture, and sell advanced equipment by means of increased levels of complexity and ambiguity. Increased levels of complexity and ambiguity has an impact of levels of risk, risk that in turn is pivotal for organizations to manage. This research explored the existing literature on risk management and the perceived value that risk management creates for project organizations. Its aim was to assess how an international high-tech manufacturing company that innovates, manufacture and sells advanced products globally, manages risk for five transformative new product developments. Key project personnel were asked to participate in a survey questionnaire utilizing ISO 31000 as a framework. In addition, this research aimed to understand the perceived value of risk management by survey participants. The results showed that risk management was seen as a value adding part of new product development projects by the survey participants. They furthermore showed invocation for improved processes, more training, and tools to better support and execute risk management. The enthusiasm and interest in risk management expressed in the results showed that the company is well positioned to take the next step in maturing and improving its risk management approach.