Principle #10 for Collaborative Ecosystems: Risk Management

All business ventures have risk associated with them. Some collaborations are formed as risk mitigation measures. For organizations not skilled at managing collaborative relationships, there can be higher risks in delivering value from the collaboration because the skill sets to manage cultural or operational differences are underdeveloped. A different tolerance for risk can be itself a risk in the partnership.

We often speak of governance as a balancing act between trust and control on a fulcrum of risk.? As risk increases the need for more rigorous governance may be warranted.? High-trust partnerships may not rely on structured governance because the perception of risk is low. ?As governance is a system for managing performance, ecosystem orchestrators should identify where are the risks and implement processes to monitor and manage risks.? Several of these risk management measures were mentioned in the newsletter covering governance. One example is curating who is eligible to join an ecosystem. This reduces the risk of admitting bad actors.?

Partners within an ecosystem should identify their individual risks participating and decide how to manage them.

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Below is a depiction of all twelve collaborative principles. You can read the full article?here.

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