4) is willing to accept an above-average degree of risk in creating and disseminating social value;
To avoid these risks, the Handbook puts special emphasis on documentation and metadata. In particular, the Handbook recommends the preparation of relevant documentation at the end of each phase
The results of business tendency surveys are combined usually into composite indicators to reduce the risk of false signals,
To minimise the risks of producing meaningless composite indicators, sensitivity and robustness analysis are required. Analysis of this type can improve the accuracy, credibility and interpretability of the final results.
sensitivity checks can help distinguish between significant and insignificant differences, thereby minimising the risk of misinterpretation and misuse.
but may introduce the risk of increased susceptibility to cyber intrusions by malicious agents 26.
particularly as the complexity and interactions of several market players significantly increase the risk for large-scale failures.
the differences between providers and the risk behind each option. Ensuring that small business owners are able to make these informed choices will involve a coordinated approach from the industry,
awareness and perceived risk are reported rarely as a problem and the most common obstacle (though no more common here than elsewhere) appears to be a lack of demand no interest from customers.
Europeothersengland, Scotland, Ireland 10 Since the near-failure of the banking system in 2008, the combination of low interest rates, rising risk-aversion among providers of finance,
Generally speaking, lack of awareness, security risks, a lack of demand and a shortage of cost-effective solutions tend to prevent SMES from engaging in e-commerce, according to ACCA members (Figure 6). As with other aspects of the digital agenda however,
security risks tend to be the primary obstacle, showing that these may not be perceived only the risk borne out by the fear of the unknown,
but potentially a genuine problem that needs to be understood and addressed by the industry and other stakeholders.
and that is the real risk of overestimating the reach of the European digital market. Considering that some 30%of Europeans have used never the internet (European commission 2010a),
efforts need to be made to manage the risk of excluding and penalising a significant proportion of enterprises through wider adoption of any of the digital solutions discussed in this report.
On the other hand, lack of demand, risk, cost effectiveness, lack of advice and availability of reliable internet access are‘second generation'problems more common in sectors that are more familiar (though still not very much so) with the technology.
Prepare to take risks: changing a business model is a continuous process. Integrate an ongoing strategic reflection of your business model.
mitigating risks related to the use of chemicals and improving the data management of the chemicals2. www. aga. com CAR2GO:
Saves costs of raw materials, transport, storage, management etc. over relatively short time periods and with generally low-risk investments.
The World Economic Forum (WEF) Global Risks Report 2012 ranked extreme volatility of commodity prices as the fifth most important risk in terms of potentially negative impacts7.
especially for fossil fuels and metals8. 3. 2 Material and energy productivity Many companies are exposed to risks of raw material supply shortages,
World Economic Forum Global Risks Report 2012, www. weforum. org/reports/global-risks-2012-seventh-edition 8 European Environment Agency 2010:
and energy productivity can save costs and lower risk by making companies less dependent on imports.
What are the risks and opportunities of implementing a sustainable supply chain management approach? Eco-innovate!
Evaluate risks and opportunities through a risk management approach or an opportunitybased approach. Establish a common language Set sustainability targets and procurement criteria for the supply chain.
Evaluating risk, especially long-term costs and benefits may be challenging. Understanding the environmental impacts across the life-cycle is essential,
price, cost reduction, risk reduction, accessibility, convenience and/or usability? How does improved envi-Business case for eco-innovation Feedback from market research
What are associated the risks with each source of funding? What types of free or subsidised funding or business support is available from government programmes or SME business support agencies in your country?
the European Investment Bank (EIB) could consider widening the scope of applications, in particular by broadening and deepening risk-sharing operations,
the EIB could consider widening the scope of applications, in particular by broadening and deepening risk-sharing operations,
Mezzanine), funded risk-sharing facilities with banks (investors) 4 Investment lloans Investment lloans RDI financing Midcaps/Large corporates/public sector entities (investment
TOWARDS EUROPE 2020 Box 2. The EIB Risk-sharing Finance Facility An example of funding available for innovative firms during the development phase is the EIB's risk-sharing finance facility
o Establishing an integrated venture capital market in Europe o Expanding the permanent risk-sharing products of EIB o Developing tax incentives to support investments in R&d and innovation, especially for young innovative companies.
the European Investment Bank (EIB) could consider widening the scope of applications, in particular by A NEW APPROACH TO INNOVATION POLICY IN THE EUROPEAN UNION 35 broadening and deepening risk-sharing operations,
This fragmentation and the complexities of the system, coupled with the costs and the risk of costly litigation, leave European SMES with the impression of having large parts of Europe in
There is a serious risk that solutions advocated for other technologies (such as drugs or chemical compounds) would not work for CRTS,
The risk of opportunistic behaviours by competitors speaks in favour of ensuring intellectual property protection for firms willing to delocalise R&d
At the same time, risk for consumers is reduced due to acceptance of a commonly recognised standard. The overall impact 70 STANDARDS AND STANDARDISATION POLICY IN EUROPE on competition is positive whenever the standard fosters aggressive downstream competition
Without proper information exchange, there is a risk of multiple patent calls and the formation of several smaller (and thus less efficient) licensing programmes.
it creates a high risk of severe delay of time-tomarket of standard as licensing terms must be created
it also brings a high antitrust risk, even if group discussions are allowed formally not; and it does not help to foster mutual trust,
SSOS and patent pools by minimizing the risk of strategic behaviour. In this respect, the European commission should work on future policy documents (such as the horizontal guidelines) that:
Literature PL Patent Literature R&d Research and development R&d&i Research, Development and Innovation RSFF Risk Sharing Finance Facility UPLS Uniform Patent Litigation System
Internal Auditing & Risk management Anul V, Nr. 4 (20), Decembrie 2010 1 ICT STRATEGY SUPPORT FOR BUSINESS DEVELOPMENT AND INNOVATION Lecturer, Ph d. Nicoleta GUDANESCU
when the business development lives its own life without taking care of real business needs Internal Auditing & Risk management Anul V, Nr. 4 (20), Decembrie 2010 2 and co-operation
and a ploy (beating the Internal Auditing & Risk management Anul V, Nr. 4 (20), Decembrie 2010 3 competitors).
Internal Auditing & Risk management Anul V, Nr. 4 (20), Decembrie 2010 4 Systems interaction has become complex.
strategies and policies 6. Assess the potential impacts of ICT Internal Auditing & Risk management Anul V, Nr. 4 (20),
All these levels need different kinds of ICT and these levels have four Internal Auditing & Risk management Anul V
Ward and Griffiths, 1996) Internal Auditing & Risk management Anul V, Nr. 4 (20), Decembrie 2010 7 Still as we have seen,
Companies do not have a common research framework to achieve Internal Auditing & Risk management Anul V, Nr. 4 (20), Decembrie 2010 8 success both in business and ICT research.
Internal Auditing & Risk management Anul V, Nr. 4 (20), Decembrie 2010 9 Figure 4. Strategic alignment model (Parker et al. 1989;
Success Internal Auditing & Risk management Anul V Nr. 4 (20), Decembrie 2010 10 could be achieved through focused development activities,
The concluding Chapter 6 identifies potential risks and unintentional consequences which can arise if simplistic interpretations of the data are made,
Honesty, Openness and Fairness Confidentiality Conflict of interest Respect for Human Subjects Respect for Animal Subjects 41 Assessment of Risk and Benefits Research should follow‘good practice'with respect to avoiding plagiarism,
reduced environmental risk; preservation initiatives; conservation of biodiversity; enhancement of ecosystem services; improved plant and animal varieties;
They illustrate the risk of aligning higher education priorities and resources to match indicators. Simple ranking of universities on the basis of bibliometrics or citations can ignore differences between disciplines and between university missions, resources and context.
the Ministry of Education arguedthat the risks of such tendencies had partly been met by the fact that the publication indicator consisted of two levels.
The most dominant problems are listed below in Table 1. Barriers to innovation in SMES Studies (amongst others) Financial bottlenecks-hindered access to external finance,-high innovation costs (and therefore)- high economic risks Acs
and ii) SMES. b) What are the advantages and possible risks of internationalization of innovation activities, particularly of R&d?
and EIB has no contractual relationship with the beneficiaries EIB gives additional support for priority projects, with higher risk profile than normally, in a form of Structured finance.
and early operational risk subordinated loans and guarantees ranking ahead of shareholder subordinated debt mezzanine finance,
and partly cover the revenue risk. By improving the risk profile of the senior debt
LGTT facilitates the difficult ramp-up period of the projects. The projects of common interest in the field of transport can benefit from the LGTT instrument.
because it has the ability to take construction and ramp-up risk, it has a strong experience in arranging project finance
and for fixed price and carries the risks. The private sector may construct the asset in less time
and the risks are enormous, because the relevance of an international airport for a State is remarkable.
In Berlin Brandenburg airport the investments and risks were transferred to a Special Purpose Vehicle (SPV), Berlin-Brandenburg International Partner (BBIP.
and carried the risks 23/38 Best practices in transport infrastructure financing 1/23/2013 The Baltic Institute of Finland/BSRP Transport Cluster caused by the delay.
and bare most of the costs and risks. EU supports the construction works at the cross-border sections with approximately 10%higher grants
and clarify the sharing of risks and costs. Roads 34/38 Best practices in transport infrastructure financing 1/23/2013 The Baltic Institute of Finland/BSRP Transport Cluster Introduction Road network is still very
In the view of the Ministry of Transport and Communications, PPP shall only be used to the extent that this form of contract involves the transfer of risk
and financing is shared so the risks won't be too high for any participant. In Poland the road project was implemented by a consortium that took care of the whole project during a concession period of approximately 30 years.
With more than 120 million people in the EU at risk of poverty or social exclusion, EU leaders have pledged to bring at least 20 million people out of poverty and social exclusion by 2020.
When the Mextal company marketing Viedome sees a risk, every effort is made to try to eliminate it by adjusting the business in organisational, economic and social terms,
This also involves innovation and taking calculated risks, but within a professional and strategic context.
and managed risk-taking is also important. This has been underpinned by the company developing a unique and successful‘social business'model, on top of its commercial business model,
and risks need to be taken. This highlights one of the differences between Europe and the US where there is arguably a greater risk-accepting culture.
For example, Gansky (2010) talks of screw-it, let's do it experimentation in the US, compared to a much more risk-averse culture in Europe.
Whether or not the sharing economy becomes a business, remains purely voluntary or some mix in between,
monitoring devices to self-screen for health risks such as diabetes or heart attack, or online enabled calorie-tracking solutions.
medical situation awareness and analysis (risk classification, root cause analysis and risk triggers), and context-aware coaching that enables solutions for converged disease risk management and patient behaviour assistance toward prevention care or prediction of diseases for better disease risk control.
As a result the increasingly elderly population will be able to live more independently in their home environment,
Home monitoring will become more widely available for people considered at risk. This requires better monitoring regimes for chronically ill patients, through monitoring of vital signs.
Despite the project branching out to national levels the true nature is limited quite in is overall capabilities as it is in essence designed to amplify medical services to a specific group of high risk patients that are diagnosed with type 2 diabetes mellitus.
and research staff of excellence and establishing prestigious MA programmes with high international profiles. 6. 1. 8. Increasing integration into labour market of people from groups at risk of social exclusion Unemployment
For this reason, the Government promotes measures to foster integration into the labour market amongst groups at risk of social exclusion.
and internationalisation 1. 8. Increasing integration into the labour market of people from groups at risk of social exclusion 1. 9. Using ICTS to promote equal opportunities
with financial institutions, guarantees, capital risk funds, co-investment, etc.).It is also important to promote channels of access to finance
In order to anticipate any situations of risk the Government maintains permanent contacts with the business world. 6. 5. Promoting entrepreneurship The Government implements measures aimed at developing the capacity to create new companies,
the social economy is vital for fostering the integration of groups most at risk of social exclusion.
actors'autonomy and risk taking capability and willingness to work for the community is inferior to
actors'autonomy and risk taking capability and willingness to work for the community is inferior to
one of the main risks, and an important aspect to consider, when talking about citizen engagement is the danger of engaging only those people who are engaged already in an issue,
since this stage exposes the facilitator to the risk of a circularity of bad interpretations.
Avoidance of any classifications by the system which may expose its operation to the risk of stereotyping
Technological innovation and adoption characterised by uncertainty, search, exploration, financial risk, experiment, and discovery take place in an established social and cultural environment.
thus reducing the risks involved in R&d and improving the chances of a satisfactory return on investment in ICT for the private health subsector.
As a legislative framework, it sets a museum at risk even when simple digitisation activities are implemented
community and social values While the museum was aware that this project would be full of uncertainties and risks,
Social inclusion-lifting at least 20 million people out of risk of poverty or exclusion. In order to meet these targets,
a. Better communicate the risk reduction potential of the SME Instrument as a key benefit to prospective applicants and their financial backers.
Business is about managing risk and we have to speak to firms in a language they understand.
As a general message, such actions should include better communicating the risk reduction potential of EU grants to prospective applicants and their financial backers.
H2020 Access to Risk Finance The Risk Sharing Instrument (RSI), part of the Access to Risk Finance specific objective, provides a guarantee facility to innovative SMES and mid-caps
In essence, the SME Instrument is an intelligent new EU cofunding scheme of business excellence and a feeding channel for growth via risk financing.
What are the inherent risks and uncertainties for SMES with the ambition to set new trends?
making the business environment more competitive and increasing risk. EU initiatives have to reflect these conditions and offer greater flexibility.
The EAG's work here overlaps with that of the Advisory Group on Access to Risk Finance.
firstly, at a conceptual level (the role of risk finance in bridging the liquidity gap;
and secondly a specific practical issue (the importance of risk finance in the success of the SME Instrument.
EU Funding as a Means of Reducing Risk and Addressing the Liquidity Gap For SMES, one of the main benefits of EU (and national) grants is as a risk reduction measure rather than the direct funding
However, potential investors and loan providers for such grant-supported innovation projects will see their risk exposure reduced, partly by the reduction in funding requirement,
Overall, their risk-adjusted financial business case is improved. Hence, an EU grant-supported innovation project will have better possibilities to attract funding to cover both
investors see their risk reduced and their‘upside'increased; the entrepreneur ends up giving away less equity to attract investors'attention;
Hence the investor, based on previous experience makes a‘risk adjusted'calculation of his expected return,
using a risk ration of 65%.%This changes the expected IRR from 40%to 7%.Now it is no longer a nice deal.
Even if he maintains his risk assessment of 65, %his IRR calculation now shows 45%.%However, if life turns out as budgeted,
year 3 year 4 year 5 Budgetted company value at investment Budgetted company value at exit Risk adjusted Company value Horizon 2020
Actively emphasize the risk reduction potential of the SME Instrument: Firstly, in terms of the overall message, the SME Instrument is being marketed primarily as yet another'grant scheme,
Uniquely among EU actions, the SME Instrument is aimed at reducing the risk and bridging the funding gap (the‘valley of death')between research grants
By decreasing the risks associated with early stage innovations the SME Instrument (together with other H2020 grant
This risk reduction aspects needs to be communicated much more clearly. Whether as an investor or as an SME owner/manager, business is about managing risk
and the initiative must speak to firms in a language they understand. Recommendation 4. 1: Better communicate the risk reduction potential of the SME Instrument as a key benefit to prospective applicants and their financial backers.
Phase 2 funding under the SME Instrument raises major liquidity issues which demand urgent attention.
The Innovation EAG & the Access to Risk Finance Group will address this Horizon 2020 Expert Advisory Group Innovation in SMES:
Consultation on Next EU Strategic Work Programme 2016-2017 14 efforts to better communicate the risk reduction potential of a Phase 2 grant (as mentioned above) as part of a coherent communications strategy
%With such high application levels, there is a risk that submission under the SME Instrument becomes seen as something of a lottery,
or accept the risks that go with this. The Commission has included in Horizon 2020 funding to accelerate innovative procurement methods of this type.
as well as new solutions and services for the ageing population. o Innovative‘DIY'products and services around 3d printing and additive manufacturing, including attention to European regulation/standards/risk management. o Challenges
approaches there is a risk that calls become too prescriptive. Themes should serve as‘inspiration'rather than a‘straight jacket'.
Everybody wants the creativity and innovation but not the risk of failing. But creativity needs the freedom to explore
Exploration of innovative services and new services in public organisations as proposed by the RDI strategy 2013-2020, could improve the low risk taking culture of civil servants.
Therefore, the Commission found useful to examine further the risks involved and progress in the unwinding of imbalances in an in depth analysis. The in depth review (IDR),
the low level of risk-taking together with the intensity and type of competition seem to influence firms'behaviour with such a power that STI policy schemes cannot offer strong enough incentives to overrule these unfavourable effects. 11 5) Deficiencies in the STI governance system
Risk-averse attitude and culture is deep-rooted in the Hungarian society. As long as research and innovation could be highly risky
that grants support mainly low risk projects and for example require that applicant companies should be in business for 2 years.
%Within the program, a collateral scheme has been developed based entirely on the risk management of the collaborating banks,
(mostly commercial banks and saving banks) based on predetermined risk sharing, thus improving the SMES'bank finance options.
For a given credit, the amount of collateral to be secured by Venture Finance Hungary Plc is a maximum of 80%of the bank claim the rest constitutes the bank's own risk
slowly growing (pre) seed capital market and low number of business angels(-)Risk taking is generally low among population
and Hungarians have a rather risk-averse culture. No public measure in place to promote willingness to take risk.(+
+The RDI strategy 2013-2020(+)New Széchenyi Venture capital Programme(-)The RDI strategy 2013-2020 9. Public support to research and innovation in businesses is simple, easy to access,
The risk of claims resulting from such infringement rests solely with you. If you wish to reuse a component of the work
and putting in place the necessary infrastructure to reduce the risk of errors. The indicator will also provide information allowing comparison of transparency standards for land administration systems around the world.
And requirements that technical experts review the proposed plans before construction even begins can reduce the risk of structural failures later on.
considered more effective in predicting risk than credit histories alone, may improve market efficiency and provide borrowers with more opportunities to obtain credit.
And Uruguay implemented a risk-based inspection system that reduced customs clearance time. HIGHLIGHTS OF REFORMS STRENGTHENING LEGAL INSTITUTIONS Among reforms to strengthen legal institutions in 2013/14,
health insurance, unemployment, an accident risk fund, a guarantee fund and medical leave. BOX 4. 2 Southern European economies continue a steady pace of regulatory reform Greece, Italy,
Introduced or improved risk-based inspections Uruguay Uruguay implemented a risk-based inspection system that reduced customs clearance time.
and because of high risk levels 0 G1 rural 20 Areas that are still rural or agricultural with an intermediate level of risk,
and reduce the risk of errors. Reliable land administration systems can provide up-to-date information that is sufficient to make meaningful inferences on ownership.
One that promotes the availability of credit by reducing the risk to lenders of accepting movable assets as collateral.
while minimizing the risk of nonpayment of loans. The Security interests in Personal property Act, which came into force on January 2,
One study found that credit registries played a valuable role in calculating credit risk for capital
reduces the risk of human error and allows the streamlining of work flows with appropriate business and validation rules.
But the separation also creates risks. Without a proper structure and allocation of duties and rights,
To appeal to more risk-averse investors companies in emerging markets are listing on more developed stock exchanges such as the London Stock exchange, the New york stock exchange or NASDAQ in addition to their home country exchanges.
For example, risks associated with conflicts of interest increase exponentially when a CEO can also be chair of the board of directors
the global financial and economic crisis also led to growing tax compliance risks in some economies.
These were aimed at easing the administrative burden of tax compliance to counter the greater risk of tax evasion during economic downturns.
Changes easing the administrative burden of tax compliance countered the greater risk of tax evasion that arises during economic downturns.
free markets would produce perverse incentives to take excessive credit risks, which drive up the cost of the welfare system as a whole. 18 Those arguing against them conclude that courts should enforce all voluntary contracts that do not produce negative consequences for others
They allow entrepreneurs to determine the maximum risk associated with a failed venture. 7 And they allow creditors to calculate the maximum risk associated with an unpaid Loan collection of debt through bankruptcy proceedings may be the least attractive option for any creditor,
because these proceedings involve several creditors trying to enforce their claims against the same debtor. 8 So,
clear risk allocation rules and incentives for gathering and dispensing information Ensuring a transparent and predictable insolvency law that contains incentives for gathering
Whether financial statements must contain explanatory notes on significant accounting policies, trends, risks, uncertainties and other factors influencing the reporting.
Uruguay Trading across borders Uruguay made trading across borders easier by implementing a risk-based inspection system that reduced customs clearance time for both exports and imports.
and are willing to take the risks necessary to get a business off the ground.
and are willing to take the risks necessary to get a business off the ground.
if there was a risk of failure, starting-up a business should be avoided, compared to only 28%in the US.
when there is a risk of failure. Based on all of the above, there is a clear need to endow European citizens with an entrepreneurial mind-set by developing a truly digital entrepreneurial culture where failing is not wrong
Figure 11 Risk perception:""One should not start a business if there is a risk of failing"Source:
European commission (2012. Entrepreneurship in the EU and beyond; Deloitte analysis However, it must be remembered that not all European citizens are born natural entrepreneurs.
European Member States are in general more risk averse 23 Pillar 3 Attract, develop and retain high-end digital skills
However, many investors are reluctant to invest in start-ups and innovative firms because of the high risks and transaction costs,
or because they estimate that the expected returns will not compensate for the risk. As access to these traditional financing sources seems to be a barrier for many SMES and start-ups,
what keep people from starting up a company is the fear of risk and the lack of confidence in starting entrepreneurial activities alone.
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