Risky business: How combining risk management and innovation in business can deliver growth

In the wake of the financial crisis that began in 2008, while businesses have been pre-occupied with survival, there is a growing recognition that survival also involves innovation and evolution, seeking out new markets, products or services. Concurrently , the span of business ‘risk' has grown, connecting with global phenomena such as rising political instability, expanding technology and extreme weather associated with climate change.

This report investigates how the companies which appear to be making the most of challenging conditions are applying risk management principles to innovation. To them, risk management is no longer seen as a principle designed to thwart innovation. On the contrary, risk management and innovation are seen as flip sides of the same coin by many growing businesses.

In order to explore this, Allianz has commissioned new research among businesses to shed light on the changing relationship between risk and innovation and capture and highlight views on the topic.

What we've discovered is encouraging and suggests that companies are starting to work in new ways where managing risk is seen as being complementary to the desire to innovate and, as a result, is creating more value. The wider economic growth potential of supporting this trend is both clear and worthwhile.