Risk assessment of technological innovations in MNC’s

Abstract

Nowadays the competition has increased dramatically. In order to stay competitive, many companies have to innovate on both, product and process levels. Automation of production activities is one of examples of process innovations that may become an effective response to current and upcoming challenges. At the same time, such projects may be quite risky and, as a result, precise assessment is needed. The main objective of this research is to provide risk assessment framework that not only lists potential risks that can be faced by multinational companies during technologically-innovative projects’ implementation, but also prioritize these risks according to their influence on projects’ development. The empirical research is based on case study of British American Tobacco Russia and its Finished Goods Conveyor project. Results of the analysis cover general risk assessment for the whole project, detailed stage risk assessment and interstage analysis.