By: Sophie Goldberg
In a world constantly accelerating towards technology and connectivity, it seems as though innovation has never been more important. In many ways, this is true; companies today are increasingly obsessed with engineering vehicles that will propel them forward. But equally as important as creating a gas pedal to fuel those vehicles, is having a brake system to manage their speed. This is where risk management comes in. If innovation is the gas pedal of your organization’s vehicle, risk management is the brake system that helps the company proceed safely. And much like the gas and brake systems in cars, not only can risk management and innovation work together, they should. The key to any organization’s success is marrying the fearlessness of startups — their wild ideas, innovative products, and groundbreaking technologies — and the structure of large organizations — their organized metrics, established financials, and secure safety nets. Connecting these concepts is like gradually accelerating the car with an eye toward oncoming hazards; when used harmoniously, both systems help the whole vehicle travel safely toward its destination.
There are many routes that can foster innovation while encouraging strategic risk management. To maintain a sustainable innovation / risk management balance, Financial Management Magazine specifies five actions:
- Set risk culture at the top: One of the most basic tenets of success in any organization is a clear set of priorities. Leaders need to ensure that everyone invested in their organization understands risk and how to manage it.
- Involve risk management in an entire innovation cycle: All too often, companies analyze risk before proceeding with a new idea, product, or system. Some consider risk management once again, when innovation is starting to come to fruition. Rarely do organizations keep risk management practices in their back pocket at all times, ready to merge innovation and risk management whenever necessary.
- Adjust risk appetite: Companies that are unwilling to constantly reevaluate their risk management processes might as well stop taking risks at all. It’s imperative to approach risk-taking as a living and breathing concept.
- Develop new competencies: To ensure that enough innovation occurs in any organization, learning and perfecting new skills is crucial. Whether it be in technology, communication, PR, or anything in between, new skills lead to new innovations.
- Monitor risk management effectiveness: At Spyre Group, monitoring risk management effectiveness in two-fold. First, it means that organizations must often analyze how they are exploring risk management in their company. Are they utilizing both qualitative and quantitative methods? Are they drawing on a number of sources to understand the risks they take? Second, it requires that companies present their risk management analyses in an accessible way. Ensuring that both organization investors and consumers understand the risk management analyses likewise ensures that the company can continue innovating with the support and stability necessary to foster success.
inding a comprehensive and personalized balance between innovation and risk management is necessary to ensure that an organization’s long term success. But even with a perfectly engineered gas pedal and brake system, a vehicle will not travel safely without a steering wheel. This is exactly where Spyre Group comes in. Our unique model focuses on personalized innovative processes that make sure your company applies the correct pressure on a gas pedal, as well as a safe push of the brake. We can guide your organization exactly where it needs to go without changing the fundamentals of the group. We will give you the tools you need to maximize innovation, minimize risk, and analyze your organization at any moment.
Ready to discover the best vehicle for your organization’s future? All you need to do is get in.
Dan Balter nació en Azula, un pequeña ciudad de la periferia de Israel en la que viven unas 40.000 personas. Hijo de padre uruguayo y madre argentina, a los 17 años creó una empresa que se dedicaba a la fabricación de vestimenta repelente de mosquitos, y a los 22 años la vendió por US$ 14 millones. Desde entonces, Balter inició otros negocios, como la compañía ATP que brinda servicios para reducir el impacto económico de las cancelaciones de vuelos en la industria de las aerolíneas comerciales, y es co-fundador y miembro del directorio de HYPE Foundation, una organización que busca promover el emprendedurismo y la innovación tecnológica en torno a los deportes.
Innovation is the driving force in the progress of any modern society, dictating economic success and creating cross-cultural connection. The spread of innovation occurs in climates that are conducive to creating thinking, co-working, and financial investment. Such a climate is referred to as an entrepreneurial ecosystem. The meeting of the public, private, and academic sectors creates a strong entrepreneurial ecosystem. When the three sectors are symbiotic, the stage is set for entrepreneurial success, catalyzing the rapid spread of innovation throughout any given society.
There are 7.5 billion people in the world today. Within the next 50 years, the population will reach over 10 billion. As the population rises exponentially, so too does poverty, unemployment, and economic stagnation. Large-scale job creation requires a great deal of capital and power, but even with these resources many efforts to combat job scarcity fail to put a dent in the problem.
Dan Balter, el vicepresidente y fundador de StarTau, el centro de emprendimientos más grande de Israel y uno de los mejores 25 del mundo, visitó Uruguay. Se mostró sorprendido por el buen desarrollo del ecosistema emprendedor uruguayo y explicó que para que existan cada vez más talentos que desarrollen ideas, se necesita una gran conexión entre la Academia, el gobierno y los privados.