ENTREPRENEURSHIP

Detailed explanation-1: -Answer: b. Economic downturn is a common risk of innovation.

Detailed explanation-2: -There are many risks associated with innovation such as the loss of money, the loss of time, the loss of company reputation/image, and the loss of potential.

Detailed explanation-3: -What is innovation risk? Innovation risk deals with likeliness and repercussions. It refers to the probability of any untoward happening that may affect the innovation process at a given rate or time. It also involves any unfavorable circumstance that may affect the success of a specific innovation measure or project.

Detailed explanation-4: -Innovation therefore means dramatic changes in the ways institutions must manage risk. We believe they need first to establish an explicit institutional appetite for innovation risk and then to engage continuously. We have identified three pillars of innovation risk management: 1. Innovation Risk Appetite.