Product Development Risk
This is the risk that the firm or organisation is impacted or suffers loss due to a failure to develop and/or implement a major new product (or products) that an organisation agrees to develop or otherwise approves the development of. The failure can be due to one or more of the following reasons:
- Problems or issues in the technical or development phase of the product;
- Problems in commercialising or producing the products in economically viable quantities;
- Inability of the product to meet the requirements of the customers or intended markets; or
- Failure of a new product or products to be accepted by the market.