Stage 4: Manage Risk to Handle Uncertainty
Risks are the main outcome of assumptions which are not recognized or mitigated. It is important to have an honest discussion about the assumptions of employees which are making for their business through the three stages – understanding the problem, devising the solution and crafting the business. Areas of assumptions include all aspects of the business model. Some of them of them are: customer motivations, needs and future behavior expectations; value proposition; value delivery; value creation; value partnership; value capturing, including pricing and licensing model; value funding, including cost projections; experience implications and resources, Process and Technology dependencies. If an assumption is proven false through research, negative consequences on the business would result in: minor; major; and critical. Aggregate the number of assumptions which have minor impact on the business. Employee will have an accumulated value or "Minor Risk Impact Value.".