Risks of Development and Implementation of Innovative Projects

Abstract

Project-based approach is one of the most widespread approaches to promotion of innovations. Risk management in innovative projects is one of the most difficult tasks in project management due to high degree of uncertainty which is intrinsic to innovative projects. Depending on the phase of innovation’s life cycle, the parameters of innovative projects’ risk management change, which, in turn, results in the need to use various methodic tools. The key risks on the phase of development and implementation of an innovative project include the risk of non-realizability of an innovative idea and the group of risks related to failure to achieve the basic project parameters including the timing risk, project budget deficit risk and the risk of failure to achieve the innovation’s targets. Targets include improvement in risk management on the phases of development and innovations in case of the project-based approach through development and adaptation of existing and elaboration of new approaches and methods of risks identification, assessment and mitigation. This article solved the following issues, which contribute to achievement of the above goal: - identification of key risks of innovative projects, which are intrinsic to the phases of project development and implementation; - adaptation, enhancement and development of methodical tools for assessment and analysis of the key risks of innovative projects; - elaboration of enforcement actions focusing on the key risks of innovative projects on the basis of data obtained in the course of risk assessment. The research allowed to develop the algorithm of innovative projects’ risk management on development and implementation phases, which implies consistent and systematic realization of management stages and matching of assessment results with the risk treatment steps, taking into account the innovative nature of projects. DOI: 10.5901/mjss.2015.v6n4s4p243