The paper “ Risk Management in Relation to Smaller Businesses” is an earnest example of the case study on management. In the world of business, every company or business organization aims at ensuring that they grow to enjoy a market monopoly. They always want to achieve this by being entrepreneurial and innovative. Due to this, every organization does put a culture that would help spell out ways of supporting innovators who pursue intelligent risks (Marinos, 2010). Sadly, such organizations do recognize only those individuals who bring success and ignores the failures whenever they give them an opportunity to take risks.
This means that no one would always want to associate with failures. However, the concept of risk and innovation believes in the opposite of this. Managers and leaders in the business world need to give support to risk-takers and entrepreneurs if they have the need to create a culture of risk-taking and innovation in their companies. Therefore, for employees to initiate change and innovation, they will need to get positive feedback, comments, and remarks about every effort they make. This paper is out to see how the organisation has adopted the culture of risk-taking, risk management, and innovation.
Through a detailed discussion on the relationship between risk and innovation together with sampled case studies, this aim would be met. The road to establishing this relationship between risk and innovation thus requires a definition of a few terms like risk and innovation. The process of generating new ideas and implementing them into a new product, process, and service with the result being: growth in the national economy; increase in employment opportunities; and creation of more profits to a business enterprise entails the concept of innovation (Urabe et al, 1988, p.
03). This process of generating new ideas and implementing them is normally gradual and cumulative as it involves the process of organizational decision-making. A new idea in this sense is regarded as the unique thought on a new customer or ways of production (Urabe, et al, 1988, p. 03).
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