NPD Jargon Buster: Risk Management Approach

The approach identifies different project risks and helps to identify procedures related to those risks.

The PRINCE2 Risk Management Approach is a documented process that helps risk management in product development projects. The approach identifies different project risks and helps to identify procedures related to those risks. The risks are categorised via identification, analysis, probability and severity indices. The document also records the related roles and responsibilities relative to the risks, and any response plans. The response plans are specified with risk tolerances so that any apparent project risks can be better understood.

How does our risk management approach in product development help your business?

Innovolo’s risk management approach for product development is tailored specifically for your project and helps you identify, analyse and respond to any risks that may emerge. The process starts off with a formal risk analysis and then moves on to the problem and/or opportunity risk analysis. Thereafter, a systematic approach to developing a plan and implementing it is followed.

By working closely with your team at every stage of the project, we can ensure that you have all the information you need to understand where any risks may appear and how they will be managed. This helps drive business growth and keep development moving forward.

Our product development project risk management approach at a glance

  • Identify different types of risks common in a product development project with a formal risk analysis
  • Categorise risks via identification, analysis, probability and severity indices
  • Record relevant roles and responsibilities related to each risk, as well as any response plans
  • Specify how tolerable each risk is with respect to the project’s success using a pre-approved risk matrix
  • Execute a systematic plan that drives a proactive approach to manage product development risks

Features of a risk management approach

At Innovolo, our risk management approach in product development projects is tailored specifically for your business. We have the knowledge and expertise to help increase your speed-to-market through more efficient product development project management.

Below are some of the key features that make up our approach

  • Formal Risk Analysis -To understand where risks emerge on your project, we first conduct a formal risk analysis which focuses on identifying the different types of potential risk that your product development project may face. This forms an integral part of our overall plan.
  • Risk Identification – Risk identification is the process of analysing each potential risk and taking it through its entire lifecycle right up until its resolution. Risk identification is one of the most important stages within our risk management process as it helps to understand whether or not a potential risk is worth investigating further, and if so to what level.
  • Risk Progression Analysis – Once risk analysis has determined which types of risks are most likely to affect your product development project, we then assess each risk’s potential progression. This helps to determine what steps are needed to respond to the different risks that are identified, for example by reducing their impact or preventing them altogether.
  • Risk Control – We provide you with tools and resources to implement your response plans through the project cycle, which allows you to focus on delivering your product successfully while we help manage your risks.
  • Tools and Resources – Some of the key tools and resources we provide for risk management in product development include
  • – Risks management plan
  • – Risk matrix
  • – Risk inventory forms
  • – Project status report
  • Executive Reporting – A product development project must have an executive who is able to understand, interpret and act on risk management data. Our executive reporting is designed to meet the needs of your business so you can get the information you need without overwhelming your entire team with unnecessary detail.

Benefits of our product development project risk management approach

  • Targeted – We recognise that every product development project is unique and cannot be treated in the same ways. Our risk management approach is designed to target the specific risk issues you are likely to face whilst developing your product, making it easier for you to identify, assess and control them.
  • Proactive – The proactive risk management approach that we adopt aims to reduce the impact of risks on your project by constantly monitoring their progression throughout the product development process. This gives you more control over your product development project.
  • Continuous Benchmarking – Over time, we have developed a set of benchmarks that can be used to track the performance of certain risk factors on different types of projects. We use these benchmarks across our entire client base to help us continuously improve our approach and the quality of service we provide.
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