Risk Management as an Element of the Product Innovation Implementation Process in the oil Production Industry

Abstract :

It is commonly believed that most actions are taken in the uncertain circumstances of changeability and unpredictability of the organization’s context (Korombel, 2017). It is also assumed that uncertainty is a type of concrete risk (DSDM Consortium, 2010). The ISO 31000 standard defines risk as the effect of uncertainty on objectives and emphasizes the role of managing diverse risks (ISO 31000). On the other hand, within agile management risk is understood as an occurrence or a set of uncertain occurrences, which, if materialized, have a negative impact on achieving the planned objectives. It is also important that risk related to the actions taken by the organization does not only generate threats, but also creates opportunities (Hopkin, 2018). Thus, not only does risk assessment support managerial decisions within mitigating risks but also helps to identify the strengths of the project. It is commonly assumed that risk is a combination of the likelihood of an expected event’s occurrence (both negative and positive) and the scale of the potential impact on objectives (Hillson, 2009).