Managing Risk at Intel

Developing high technology products is risky business especially if a company wants to achieve or maintain competitive leadership. Technology risk alone is a constant, and risk-taking can provide a means to gaining competitive advantage. However, risk-taking does not mean taking chances. It involves understanding the risk/reward ratio, then managing the risks that are involved in each product development effort. Failure to do so can lead to substantial loss for the enterprise, including the possibility that the product will fail to achieve the business results intended (such as increased revenue, increased market share, or technological superiority). This paper, a collection of powerpoint slides, demonstrates why risk management is a vital element of Intel´s new product development process, explains how risk is managed throughout the development cycle, and provides a case study showing how effective risk management was used to terminate a new product development program when it became evident that the business objectives would not be fully achieved.