A Case for taking more business risks – at grassroot level Before discussing steps that minimize risks, these are the potential risk sources:– Changes in regulations– Product life cycle stage– Litigation– Macro-economic environment– Industry prospects– Cash flow timing– Resource-depletion– Supplier default– Stakeholder relations– Scale of investment and implications– Project risk (the uncertainty inherent in the project’s cash flows)– Corporate risks (impact on earnings)– Market risk (impact of a project’s risk on a firm’s market coefficient)If it weren’t for R&D (a pure exercise in risk-taking with a promise of huge paybacks); Steve Jobs wouldn’t have invented the MAC or the iPod (and the iPhone and iPad as a result of Apple’s previous two smash successes).If pharmaceuticals didn’t risk billions of Dollars in getting new drugs to markets, millions would die. The same Risk/Reward requirement applies to inventions in automotive industry, sea expeditions and space explorations etc.Download