Risk Management

In the pursuit of innovation through Venture Clienting, planning for success is often the primary focus. However, an equally important aspect, and one that is frequently overlooked, is planning for failure.

The concept of planning for failure in Venture Clienting is based on the acceptance of inherent uncertainties. By its very design and nomenclature, 'Venture Clienting' is closely related to 'venturing' - a term defined by the Cambridge Dictionary as 'to risk going somewhere or doing something that might be dangerous'.

Recognizing that, despite careful planning and robust systems, the unpredictable can and will occur is an integral part of this approach. In this context, planning for failure becomes a strategic imperative, a necessary counterpart to the daring spirit that Venture Clienting embodies. It is about preparing for a range of outcomes, ensuring that even when the path takes an unforeseen turn, the venture is resilient and adaptable enough to navigate through it. A compelling example of this principle in action is found in the airline industry's approach to non-compliance, such as maintaining ashtrays in airplane toilets despite a smoking ban. This measure isn't an oversight or a relic of the past; it's a deliberate strategy to mitigate the risks associated with rule-breaking. It acknowledges that, even with the clearest of prohibitions, there's always a possibility that someone will flout the rules. The presence of an ashtray provides a safer alternative for cigarette disposal, thereby preventing potential disasters like a fire onboard.

Applying this mindset to Venture Clienting, corporates need to adopt a similar approach. This involves:

• Identifying Potential Failure Points: Understanding where and how things might go wrong in the Venture Clienting process. This could be technological failures, market misjudgments, or operational hiccups.
• Developing Contingency Plans: Creating strategies to address these potential failures. This could mean having backup plans, alternative suppliers, or emergency protocols in place. This also includes having response plans that address legal, financial, and reputational aspects.
• Building Resilience: Cultivating a corporate culture that can withstand setbacks. This includes fostering a mindset that views failures as learning opportunities rather than catastrophes.

Moreover, when considering potential failures, it's crucial to assess the severity of their consequences. The impact of a failure can range from minor inconveniences to major disasters, and the preparedness plan should be proportional to the potential impact. For example, if a chosen startup partner fails to deliver on a critical technology, is there an alternative source? If a new product disrupts existing supply chains, how quickly can the company adapt?