Reflective Log: Innovation and Risk Management

This reflective log discusses the importance of innovation and risk management in the energy industry. It covers the difference between invention and innovation, models of innovation, and the role of risk management in innovation.

Running head: REFLECTIVE LOG: INNOVATION AND RISK MANAGEMENT
Reflective Log: Innovation and Risk Management
Name of the Student
Name of the University
Author’s note

1REFLECTIVE LOG: INNOVATION AND RISK MANAGEMENT
The innovation and risk management class has taught me process and skills that
encourages and motivates innovation in the organisation. One of the most misunderstood
concepts are invention and innovation, I have understood and learnt the difference in between the
two. Invention is a development of a new concept and idea whereas innovation is developing a
new aspect to an already existing concept. Innovation is an integral part of many successful
business models, for example: Royal Dutch Shell, the management of the company operates on
innovation, and the company invest significant amount in Research and development in order to
reduce the harmful impact of the business operations both on society and environment. I have
learnt during the module that the energy industry is heavily influenced by innovation. The
industry is infamous among the critics for negatively impacting the environment; this is one of
the major reasons why the industry has adopted innovation as a core principle of the business
(Goffin and Mitchell 2016). I have gathered the some of the importance of innovation like: it
helps in solving the problems a company is facing, or help the management to remain relevant in
terms of fulfilling the requirement of the stakeholders; innovation also helps in gaining an edge
over the competitors in the global market (Wrigley 2013).
The model has helped me to understand the various models of innovations aligning with
the current business environmental factors that impact the energy industry. The models of
innovation that are discussed in the module help in understanding the purpose of innovation in a
company. In the energy industry the model of innovation is implemented based on the
requirement of the company. As the oil and gas industry is heavily influenced and directed by
international and national legal jurisdictions, the companies incorporate innovation in the process
in order to adhere to the legal jurisdictions (Goffin and Mitchell 2016).

2REFLECTIVE LOG: INNOVATION AND RISK MANAGEMENT
Risk is a part of innovation, the management of any organisation that has innovations as
an integral part of its business model focuses on risk management as well. The module has
helped me in understanding the importance of analyzing risk and how it can be averted with
strategic management decisions. Risk management is a part of innovation as with innovation the
risks associated with the change has to be identified, analyzed and prioritized to help the
management incorporate the change properly (Bowers and Khorakian 2014).
Another benefit that I have experienced is learning the trends in the UK energy industry.
With the help of the module I have learnt that about the stages of development, I have learnt
regarding the retail aspect of the energy industry as well and how innovation has played a major
role in the process. I had to unlearn a lot of preconceived ideas while studying the module is it
risks management or the difference in the concept of invention and innovation. This has been the
major challenge during the course of the module.

3REFLECTIVE LOG: INNOVATION AND RISK MANAGEMENT
Reference List:
Bowers, J. and Khorakian, A., 2014. Integrating risk management in the innovation project.
European Journal of innovation management, 17(1), pp.25-40.
Goffin, K. and Mitchell, R., 2016. Innovation management: effective strategy and
implementation. Macmillan International Higher Education.
Wrigley, E.A., 2013. Energy and the English industrial revolution. Phil. Trans. R. Soc. A,
371(1986), p.20110568.