MODULE 2 PART 9: Idea Generation (Risks in Innovation))

Question 1

(7) Risks That Businesses Should Look Out For:

Answer 1

1. Economic Risk
2. Financial Risk
3. Risks of Security and Fraud
4. Compliance Risk
5. Human Risk
6. Risk of Reputation
7. Competitive Risks

Question 2

Refers to erratic economic changes that can decrease sales, revenue or profits.

Answer 2

• Economic Risk

Question 3

Refers to internal and external circumstances that directly impacts a company’s profits.

Answer 3

• Financial Risk

Question 4

Refers to the increased risk to cybersecurity from hackers, cybercriminals, and fraudsters.

Answer 4

• Risk of Security and Fraud

Question 5

Refers to the potential of a company to face legal penalties, financial loss, and material consequences due to violating external laws and regulations.

Answer 5

• Compliance Risk

Question 6

Caused by intentional actions like employee theft or circumstances like health issues.

Answer 6

• Human Risk

Question 7

This can put the company’s reputation in jeopardy, and negatively affect the profits and shareholder confidence.

Answer 7

• Risk of Reputation

Question 8

Arises when a company loses ground to its rivals after establishing itself in an industry.

Answer 8

• Competitive Risks