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Risks in New Product Development Developing a Risk Reference Framework

This paper describes the development and applicability of a risk reference framework (RRF) for diagnosing risks in technological breakthrough projects. In contrast to existing risk identification strategies, the RRF centers on an integral perspective on risk (i.e. business, technological and organizational) and the assessment of risks in ongoing projects. The resulting RRF consists of 12 main risk categories and 142 connected critical innovation issues and has been developed for a globally operating company in the fast moving consumer goods industry. It was found that to some extent different project members identified the same risks and that saturation occurred in the number of new risk-issues brought to light. It is concluded that a formal risk-assessment is worthwhile to enhance the success of breakthrough innovation projects.