Each decision has the possibility of resulting in loss. Each decision to introduce a new product into the marketplace can result in varying degrees of loss or gain. To be entreprenual is to accept risk, that is, the possibility of loss. A good entreprenuers forte, however, is to make decisions which maximize possible gain, and hence minimize possible loss. This has to do with risk management.
Risk analysis has to do with the analytical process used to estimate the extent of possible loss.
So does risk assessment which provides rationale for the decision maker. To become and remain competitive requires the use of risk methodology as a guide for decisions which could ultimately mean survival or demise . The Japanese have recognized this for years and have adopted the PDPC diagram as an everyday management tool to deal specifically with risk. Decomposing the risk of designing for competitive advantage into the primary components of value ,which are cost, quality, and timeliness, then risk can be estimated by the extent by which final cost is expected to exceed planned cost, by the extent by which expected quality will fall short of planned quality, and by the extent by which expected market introduction will fall short of the planned introduction date. Note that risk as estimated here can be both positive and negative, is a dynamic measure over the life of a project, and is multidimensional.