shouldering the burden of risk. Indeed, with competitions, it is the participants who are expected to foot the financial risk.
In the social economy, however, there are arguments for sharing, rather than shifting the risk. This can be achieved through a stage-gate process, where
participants increase the level of investment as they pass through the various stages. This is how NESTA€ s Big Green Challenge was organised
mitigate the risks of flooding and provide local residents with cheap, renewable energy. Through hydro, wind and
shares, and seek subordinated loans from sources ready to share early risk without demanding a counterbalancing share in the project†s equity
and risks are reduced. They sometimes have an advantage over venture capital funding in that they can tap investors
reliable risk) or whether they will be used to finance innovation (see also method 368 151) Venture philanthropy uses many of the tools of venture funding to
and risk-taking social ventures. It plays an important role in diversifying capital markets for nonprofits and social
and impact †by increasing capacity, reducing risk, or by facilitating adaptation to changing markets and environments.
brings a number of benefits such as distribution of risk and financing But it can only work
capacities, the diffusion of risk, and increasing efficiency and standards A recent example is Age UK, resulting from the merger Of age Concern
& Jerry†s franchises to help train at-risk youth. †Stanford Social Innovation Review. †Summer, 2003
and Sure Start providing intensive support for children to reduce risk factors. Where these succeed they create a political constituency for
Innovation in the public sector always risks being a marginal add-on †small -scale in terms of funds, commitment of people and political capital.
of risk. The challenge is to manage risk, not eliminate it. Risk can be managed across a portfolio of projects that span the high return/high risk
1 148 THE OPEN BOOK OF SOCIAL INNOVATION end, as well as medium and low return agendas.
A balanced view of risk is vital †some innovations spread too slowly but others spread too fast
without adequate evaluation and assessment, particularly when they win the backing of leaders. A commitment to evaluation and evidence, and
staged development of new approaches, helps reduce risk 318) Formation and training to integrate innovation into personal
development, training, and culture. Some need to become specialists in spotting, developing and growing ideas.
generally, innovation, including a licence to take appropriate risks should be part of personal development plans
innovation rather than a barrier to healthy risk-taking 1 SUPPORT IN THE PUBLIC SECTOR 155
351) Socialising risk. New forms of social insurance for long term care †for example, to create incentives for providers to develop innovative
social impact elements of an investment †and reducing risk 359) Local bonds, including Tax Increment Financing (TIF) and Business
366) Layered investments combining tranches with different rates of risk /return and different sources of capital (philanthropic, public, private
can handle high levels of risk, and do need not the certainty of returns of the
they face limited access to risk and growth capital, and to highly specialist technical knowledge,
report on risk and innovation 1 the UK Government scientific adviser, Mark Walport, states that â€oedebates
about risk are also debates about values, ethics and choices †and fairness, or who benefits
Managing Risk, Not Avoiding It The Government office for Science, London 2. Ayres, C. J. 2012.
and hence are exposed to the risk of becoming â€oelocked -in†to a specific technology, used by one contractor but not by others
consultants, SMES tend to avoid the legal risks of engaging in cross-border commerce Readily available basic legal information,
European SMES therefore risk missing important economic opportunities E-business Fourth phase: e-business (from 1999) Internet technology has gone far beyond a
The risk to this dependence is one of the obstacles, which delays the small organizations in embracing ICT technologies,
or market entry, to reduce risk of development or market entry, to achieve scale economies in production,
%ï to ensure at least 20 million fewer people are at risk of poverty or social exclusion
2. 2. 2 Advantages and Risks in Cloud computing Outsourcing Projects...28 2. 2. 3 Managing Changes and Organizational Issues...
4. 3. 3 Marketing Intelligence and Risk Analysis...73 4. 4 Social Listening Challenges...77
5. 2 Advantages and Risks Associated with IT Consumerization...90 5. 2. 1 Advantages and Opportunities
5. 2. 2 Challenges and Risks of the Consumerization of IT...92 5. 3 Steps for IT Consumerization...
health risk •Continuous process monitoring: e g.,, to identify variations in costumer senti -ments towards a brand or a specific product/service or to exploit sensor data to
, improving risk analysis and fraud management, to utility and manufacturing, with a focus on information provided by sensors and internet of
perspectives on value, risk, and cost IEEE Comput 46: 32†38 24. Tallon BPP, Scannell R (2007) Information life cycle.
which allows the company to transfer the risk of failure to the vendor, especially when the company does not have required the experience
2. 2. 2 Advantages and Risks in Cloud computing Outsourcing Projects Cloud computing is like any other new development in IT,
and risks. According to 8, there are many benefits for utilizing a third party cloud computing service provider for the implementing company.
8 suggests there are s number of risks when adopting cloud computing services. These risks are summarized as follows
1. The customer service quality at the company might be affected with this change, which could happen because the support managers and engineers
The risks and impact of IT outsourcing also have to be considered. Gai and Li 10, for example suggest that security problem could arise because of poorly
This risk might happen when some clients and their own competitors share the same physical storage location,
This risk can be very dangerous based on the fact that the provider does not reveal information such as, e g.,
This risk can lead to situations like financial impact, brand damage and productivity loss 4. Virtualization issues
increasing the risk of undesirable cooperation of one application (of one VM) with others on the same
and comprises risks related to data security and portability •Level 2: Cloud migration, which will happen during the change from one CSP to
another and comprises risks about data migration security and about making sure that the old CSP, will delete customer†s data on its cloud servers
Other examples of the risks include the low controllability over the service, data ownership and loss of data since it is provided by a third party service provider
The previous mentioned risks and challenges have to be considered by the transforming company which needs to be able to deal with them by having backup
such as staffing, communication, organizational rules and risk assessment. This step faces challenges such as clearly defining business and technical requirements
highlight the importance of considering the socio-technical factors and the risks accompany this migration before the firms transform their IT system to the cloud
gained as well as the risks that are inherited in this transformation The second case study, which is presented by Levine
and risks are very important in the transformation to the cloud computing environment. This situation is even more imperative
the risk related to the data protection and security, which is a very important factor that needs to be considered.
This Chapter provides a description about the risks accompanying cloud com -puting and how to manage them.
benefits and risks associated with cloud computing. These case studies show that many issues have to be considered before commencing with the transition to this
2. Carroll M, Van der Merwe A, Kotzã P (2011) Secure cloud computing benefits, risks and controls.
mitigates the risk of relying on a single vendor •The approach while providing a better
summary, they focus on risks and challenges for company data privacy and security by Bring Your Own Device (BYOD) and IT Consumerization emergent
4. 3. 3 Marketing Intelligence and Risk Analysis Key words for new strategies such as ††open solution†â€, ††information accessibil
crucial role in the risk analysis process (using, for example, sentiment analysis and opinion mining in order to forecast
has shown the risk to privacy related to vanity queries, in which a user issues a query for his or her own name 31
identify, evaluate and face the impact of external risks that rise up from social networks and 2. 0 technologies.
in order to prevent and control risks through marketing intel -ligence tools, these have to use advanced and appropriate metrics.
in order to translate potential risks into quantified data, further efforts are required to design and develop frameworks
that is focused on the risks identification in messages or texts, trying to support the decision making process
of the risk is the uncertainty. This means that more than one result can occur. A
risk associated statements or messages After this first step, the potential threats are classified on the base of their
(or can be associated to a risk •evaluate which kind of impact this risk can have
External Risks Legislation Competitors†activities Market Socioeconomic context Suppliers and partners Internal Risks Compliance Business processes
Operations Marketing Intelligence activities Reduce external factors impact Prevent risks and criticalities Fig. 4. 1 Risks areas and
factors Statement Firm Valueuncertainty Future Timing Risk Impact Fig. 4. 2 Model for recognize risks associated
statements. Adapted from 32 76 4 Social Listening In order to facilitate the automatic learning activity, all the sentences are
converted into a numerical representation, which can refer to single words, sen -tences with two or three words,
or part-of-speech (POS) tags. POS are used usually in order to catch syntactic aspects, while for semantic aspects usually tools such as
e g.,, General Inquirer have been used (http://www. wjh. harvard. edu/*inquirer /Finally, statistical approaches are used for machine learning such as Support
order to predict potential risks, but it perfectly shows all the threats and challenges that the marketing intelligence has to face
Table 4. 3 Statements and risk impact examples Statements Risk impact ††Although lots of analysts predicted that the defibrillator market would have
increased by 20%yearly, due to the population ageing most of the analysts now predict less than 10%of increase yearly†â€
5. 2 Advantages and Risks Associated with IT Consumerization Consumerization of IT represents both a challenge for the business, and an
5. 2 Advantages and Risks Associated with IT Consumerization 91 has gained an important role in increasing workforce creativity and ability to
5. 2. 2 Challenges and Risks of the Consumerization of IT The increasing number of employees†private devices used in workplace is pre
categorization for the risks associated with the consumerization of IT. These categories and the risks assessed under each one of them are summarized as
follows 5. 2 Advantages and Risks Associated with IT Consumerization 93 Category 1: Risks Related to Costs
The risks under this category are 1. Increased risk of loss of value in cases when employees bring bad reputation to
the organization†s name or brand by uncontrolled use of consumerized services /devices such as, e g.,
, Dropbox 2. The increased variety and complexity of personal and mobile devices as well as different operating systems and applications that all requiring management will
lead to increased costs 3. The possibility of losing mobile devices would likely increase when the
Risks Related to Legal and Regularity Issues The risks under this category are 1. Corporate governance and compliance control over employee-owned devices
will not be optimal 2. Since the consumerized personal devices may be owned and operated entirely by the end users, it will be difficult for enterprises to enforce their own policies
which may result in risks related to the intervention of busi -nesses in the private life and property of employees
Risks Affecting Data (Confidentiality, Integrity and Privacy The risks under this category are 1. the possibility of losing corporate data because of unauthorized sharing and
usage of information on employees†devices by the services running on them 2. the possibility of losing corporate data as a result of access by unknown users
3. the risk of losing corporate data as a result of difficulty in applying security measures and policies on application-rich mobile devices, especially when the
4. increased risk of the corporate data being hacked due to external attack The following table (Table 5. 1) summarizes
-tioned risks into primary and secondary categories. It provides cross-functional information for those interested primarily in one kind of risk who may need to
consider the relationship between certain type of risk and others. For example, it is expected that businesses dealing with privacy issues,
might also be interested in risks related to data loss 94 5 IT Consumerization Moreover, more cost oriented businesses might also be interested in legal
-related risks. In the table, the X symbol represents the primary category and the X) symbol represents the secondary category.
Additionally, the table provides explanations on why some risks are falling into one or more secondary categories
5. 3 Steps for IT Consumerization Companies have to rethink their strategies to seize the opportunities associated
Table 5. 1 Primary and secondary classification/dependencies of identified risks Category (cat & risk (R
Category Comment Costs Legal and regularity Data Cat (1) R (1) X (X)( X) Secondary categories due to effects on compliance and
5. 2 Advantages and Risks Associated with IT Consumerization 95 consumerization in order to see it as an opportunity rather than a problem.
has to evaluate the benefits and risks of such a strategy, before applying it 16
and mitigate the risks involved 104 5 IT Consumerization with the adoption of this strategy;
the privacy and security risks involved in using certain software applications Legal considerations. It is crucial to consider the different legal and privacy
top risks and opportunities responding to the evolving threat environment. ENISA, Heraklion, pp 1†18
Chapter 5 ON IT consumerization has shown some of the main risks associated to the BYOD emerging trend in organization.
estimates of the scale of the risk of cybercrime 8. According to a report titled †Measuring the cost of cybercrime†9, presented in 2012 by an international team
/monetary security/risk/and compliance, business processes, and supporting pro -cesses and infrastructure. Coherently with the BSC concept, the perspectives
/risk/and compliance perspective they can be the mapping of users and accounts in the different systems (for having an ††account density††representation), or the
Security, Risk, and Compliance Supporting Processes and Infrastructure Financial/Monetary Decision Support /Tactical Layer Risk management (Financial, IT
performance and managing decisions for value generation as well as the risks that are associated with its practices.
good governance to solve key drawbacks and risks, likewise. Thus, good digital governance enables groups to make effective decisions,
Table 8. 1 Governance benefits for risks associated to key decision making areas Key decision making areas Risks Governance benefits
Identifying the relevant decisions Misdirected effort Good governance allows to identify the decisions that have a real impact on
The risk of an enterprise not knowing the identity of its business partners is increased by e-commerce transactions
more concerned with IT governance due to their inherent risks. These threats require the adoption of strong controls, policies, and management practices
reflects the risks, as well as the benefits of a project. Organizations can achieve the best out of such situations by implementing effective IT governance practices 23
-related business risks. There is also an increasing pressure ON IT to automate and sustain compliance with regulations.
features, emotional costs due to the uncertainty and operational risks associated with the products and technologies in use.
innovation, and since the innovation process involves higher costs and risks, the incentive to innovate is,
outside the company, reducing the costs and risks of research and significantly Table 9. 9 Comparison between closed and open innovation
reducing and sharing the risks and improving competitive performance, likewise 9. 6 Summary This Chapter has provided an overview of the digital innovation impact on Business
2. 2. 2 Advantages and Risks in Cloud computing Outsourcing Projects 2. 2. 3 Managing Changes and Organizational Issues
4. 3. 3 Marketing Intelligence and Risk Analysis 4. 4†Social Listening Challenges 4. 5†Social Sensing
5. 2†Advantages and Risks Associated with IT Consumerization 5. 2. 1 Advantages and Opportunities of IT Consumerization
5. 2. 2 Challenges and Risks of the Consumerization of IT 5. 3†Steps for IT Consumerization
their risk-taking drive and level of perseverance †qualities identified as essential for an entrepreneur
or the willingness and ability to take the risk of joining an innovative start-up as an employee. 12 Figure 10 details
†A positive attitude towards entrepreneurship and risk as an enabler for selecting an entrepreneurial career with
help protect against the employment and financial risks of creating or joining a new venture
has resulted in entrepreneurs taking less risk overall. For example, in the high-tech sector, it seems that entrepreneurs
•Perceived risk •Personality type •Determination 1 Skills •Markets/business intelligence •Management skills
is an important complement to the attitude of risk -taking and perseverance that successful entrepreneurs
understanding of risk and a sense of responsibility. †18 Cultural/Social framework: Drawing attention to entrepreneurial career options
young Europeans to take more risks in innovation and entrepreneurship, and encouraging governments businesses, society and individuals to support and
Part of it is linked to higher levels of risk aversion following the financial crisis as investors struggle with an increased
Benefit for large corporates Benefit for entrepreneurs Risk to one or both partners Company shares in high-potential
organizations. 51 An overview of the benefits and risks of collaboration for entrepreneurs and large corporates is
time allocation for R&d inherits major risk for entrepreneurs. 53 Scouting for partners Developing transparency on available partners
the opportunity to accelerate processes is turned into a risk. †Fridolin Stary, Senior vice-president, Research and development, Wacker Chemie
†The inherent risk of innovation, quoted by 22%of small firms †The direct cost of innovation, quoted by 21%of small firms
single European market for risk finance Partner to support start-ups and find new models of co-investment by
European single market for risk finance Connecting and partnering to help entrepreneurs scale up Only 31%of companies have an unbroken record of
encourages young people to take risks and assume the lead on change and progress in partnership with
avoid or contain the risk of collisions. Able to innovate cooperatively, both amid and driven by contextual
to minimize the three critical types of risk in any new venture: market risk, technology risk
and team risk What does this mean for how organizations operate To master risk and reap the benefits of new sources
of growth in an increasingly volatile and uncertain environment, Cambrian Corporations will need to develop their foresight, design and synthesis capabilities.
O†Neill, M. 2013), Mini-bonds come with no small risks, Investorschronicle. co. uk, based on research from Capita Registrars
and heightened risks looming on the horizon could derail the global recovery. Much of the growth in recent
phenomena such as competitiveness or global risks The Global Competitiveness Report 2014†2015 could not have been put together without the thought
in key advanced economies remains a tangible risk that could derail recovery because real interest rates may
The risks to the global economic outlook remain very real. Past measures, mainly based on expansionary monetary policies, have helped to
monitors key trends, identifies global risks, charts relationships addresses gaps in knowledge and recommends ways to address
assessment of risk is therefore a key ingredient of a sound financial market Business investment is also critical to productivity
Yet important downside risks remain: although inflation has been coming down from the high rates of the past two years thanks to prudent
across advanced economies and renewed risks for emerging economies, the current edition of the Report
about the risks related to unsustainable resource and environmental management†the world is not moving toward a more sustainable path and concrete results are
become more concerned about reputational risks. 9 Consequently, the business sector has started to take a keener interest in environmental issues than it did
environmental risk (since 2010, the respondents of the World Economic Forum†s Global Risks Perceptions Survey consider
environmental risks both to be more likely to happen and to have greater impact), 8 the increase in the number and
efficacy of environmental regulations is welcome and timely The drivers for this increase differ across the world.
with energy costs, reputational risks, and difficulties they confront in continuing to expand their capacity†are
investments and entrepreneurial risk, which can in turn translate into the creation of new jobs and innovative
indicators helps to identify possible areas of risk and the  2014 World Economic Forum
employment to poverty risk. The existence of some social programs and the Family Welfare Institute has not
reputational risk, see http://www. scjohnson. com/en/commitment /focus on/greengauge. aspx 10 As reported by nongovernmental organizations, such as the
Global Risks 2014. Ninth Edition. Geneva: World Economic Forum. Available at http://www3. weforum. org/docs/WEF
outreach for both competitiveness and risks reports. Ms Browne also oversees the process of implementing the
and the Global Risks report. Prior to joining the World Economic Forum, she worked in the Division of Country
competitiveness and global risks and is lead author or editor of a number of regional and topical reports and
the Global Risks report series. Before joining The Global Competitiveness and Benchmarking Network, Dr Drzeniek
Risks report. Prior to joining the Forum, she worked for an economic policy consultancy in the United kingdom
Potential risks going forward concern the possible tightening of financial conditions that may follow a normalization of the monetary policy in the United states
Rewards and Risks of Big data Beã at Bilbao-Osorio, Soumitra Dutta, and Bruno Lanvin, Editors
Rewards and Risks of Big data Beã at Bilbao-Osorio, World Economic Forum Soumitra Dutta, Cornell University
and Risks of Big data 1. 1 The Networked Readiness Index 2014: 3 Benchmarking ICT Uptake in a World
Balancing the Risks and 53 Rewards of Data-Driven Public Policy Alex Pentland (MIT 1. 5 Managing the Risks and Rewards 61
of Big data Matt Quinn and Chris Taylor (TIBCO 1. 6 Rebalancing Socioeconomic 67 Asymmetry in a Data-Driven Economy
and risks accruing from big data, an unprecedented phenomenon in terms of the volume, velocity, and variety of sources of the creation
3) balancing the risks and rewards of big data from a public policy perspective;(4) managing these risks and
rewards;( (5) rebalancing socioeconomic asymmetry in a data-driven economy;(6) the role of regulation and trust
Balancing the Risks and Rewards of Data-Driven Public Policy Alex â€oesandy†Pentland from the Massachusetts Institute
helps minimize the risk of unauthorized information leakage 3. Systems controlled by partner organizations, and
Managing the Risks and Rewards of Big data In Chapter 1. 5.,Matt Quinn and Chris Taylor from TIBCO
for example, but at the same time, big data brings risks that require balancing those benefits against privacy concerns raised by the potentially unsettling correlation
risks and rewards Rebalancing Socioeconomic Asymmetry in a Data-Driven Economy Chapter 1. 6, contributed by Peter Haynes of the
and Rewards and Risks of Big data  2014 World Economic Forum  2014 World Economic Forum
the risk of losing competitive advantage vis-Ã-vis other countries Policymakers must therefore •formulate a vision for the usage of data consistent
Risks and Rewards of Data-Driven Public Policy ALEX PENTLAND MIT In June 2013, massive US surveillance of phone
the risks and the rewards of this new age of big data address policy issues in this area,
The risk of deploying this sort of data-driven policy and regulation comes from the danger of putting so
Balancing the Risks and Rewards of Data-Driven Public Policy 54 The Global Information technology Report 2014
Balancing the Risks and Rewards of Data-Driven Public Policy  2014 World Economic Forum
or that help citizens reduce their risk of catching the flu The work of these 90 research groups also
Balancing the Risks and Rewards of Data-Driven Public Policy 56 The Global Information technology Report 2014
without the work of entering data by hand or the risks associated with sharing through current social media
A major risk of deploying data-driven policies and regulations comes from the danger of putting so much
Balancing the Risks and Rewards of Data-Driven Public Policy  2014 World Economic Forum
and helps to minimize the risk of unauthorized information leakage by providing the minimum amount of information required
Balancing the Risks and Rewards of Data-Driven Public Policy 58 The Global Information technology Report 2014
Balancing the Risks and Rewards of Data-Driven Public Policy  2014 World Economic Forum
Managing the Risks and Rewards of Big data MATT QUINN CHRIS TAYLOR TIBCO One of the biggest challenges of the term big data is
RISKS AND REWARDS Digitization itself is not new, but the maturation and availability of the Internet;
It is in those extremes that the risks and rewards of big data are decided THREE KEY BIG DATA TRENDS
risks and rewards are emerging. First and foremost big data leverages previously untapped data sources Those sources are of several types.
the opportunities and risks represented by these new sources. Automated systems that manage big data ecosystems cannot be developed around rigid schemas
Managing the Risks and Rewards of Big data 62 The Global Information technology Report 2014 Â 2014 World Economic Forum
Managing the Risks and Rewards of Big data  2014 World Economic Forum data†not with the goal of having a larger dataset, but
the risk associated with the decision. There is a broad spectrum of judgments that covers small, incremental
Many of the risks and rewards of big data are coupled tightly to the use of all of those data.
Managing the Risks and Rewards of Big data 64 The Global Information technology Report 2014 Â 2014 World Economic Forum
while mitigating risks is entirely a matter of data systems sophistication. This section will explore three examples that demonstrate the
carrier more competitive and reducing the risk of negotiating and accepting poor contracts. Without the
Although the rewards are clear, a risk remains in gaining the customer†s favor while requiring access to
Managing the Risks and Rewards of Big data  2014 World Economic Forum ideal way to gain that access
customer, mitigating the risk of a brand being perceived as stalking the customer or invading their privacy
MITIGATING THE RISKS Managing the three key trends of leveraging previously untapped data sources, using automation wherever
mitigating its risks. Accomplishing these three objectives requires successfully meeting big data†s two main
of how well its risks are managed. Truly expert handling of big data brings the reward of being able to react
balance the risks and rewards of big data†especially as big data moves from low impact â€oeexperiments†to driving
Managing the Risks and Rewards of Big data 66 The Global Information technology Report 2014 Â 2014 World Economic Forum
while minimizing risks and harms to individuals and enterprises globally. Existing regulatory approaches that are based on the principles
is how little we actually know about it†its potential risks and rewards, as well as its implications for individuals
quo to identify risks and opportunities. They should consider implementing a privacy-by design mentality to avoid unnecessary costs
their participation as well as potential privacy risks. For this reason, the legislative considerations for data collection
•Finance functions (such as finance, risk, and treasury) can use big data for intraday liquidity management, providing real-time monitoring of
supported credit risk assessments that factor in hundreds or even thousands of indicators •Supply chain and procurement can use big data
Risk/security R&d Procurement Supply chain management IT Operations, real estate planning Regulatory compliance Legal Human resources
various business risks and adjust audit coverage to the areas that pose the greatest risks.
At the same time, it reduces the time spent on auditing by about 15 percent •A British multinational music recording and publishing
dives deeper into the rewards and risks that derive from the advent of big data. In addition, the Report includes detailed profiles for the 148 economies covered
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