In order to break down industry barriers and decrease failure rates, biotechnology companies require a sophisticated risk management plan. Biotechnology is an industry sector where a high failure rate for companies is considered the norm. The opportunity for high-profit levels is what currently drives the industry and sustains investment even in the backdrop of the elevated risk.

A recent survey of senior management of Canadian biotechnology companies identified the industry's key risk and growth factors and allowed for the development of models of the changing profiles over the product lifecycle. The model for company growth reinforces that a company's dependence on funding decreases during product development as product distribution and generated profits support company growth. The model for company risk exemplifies that risk is higher earlier in development and decreases with expanding market exposure.[1]

Figure 1. Risk Management in Biotechnology Innovation

Risk Management in Biotechnology Innovation is shown in figure 1. Biotech is undergoing a global evolution. The most notable innovations in biotech involve personalized medicine, drug research, artificial intelligence, big data, and synthetic biology. [2]

Risk management plays a crucial role in the field of biotechnology innovation. The biotechnology industry is characterized by high uncertainty, complex regulations, ethical considerations, and potential health and environmental risks. Therefore, effective risk management strategies are essential to ensure the safe and responsible development and commercialization of biotechnology innovations. Here are some key aspects of risk management in biotechnology:

• Risk Identification
• Regulatory Compliance
• Ethical Considerations
• Intellectual Property Protection
• Product Development and Manufacturing Risks
• Financial Risks
• Environmental and Health Risks
• Crisis and Reputation Management

Overall, risk management in biotechnology innovation requires a proactive and multidisciplinary approach. It involves continuous assessment, planning, and implementation of measures to address potential risks throughout the entire life cycle of a biotechnology product or process. Collaboration with experts, adherence to regulations, and transparency in decision-making are critical for successful risk management in this field.

References:

1. https://link.springer.com/article/10.1057/palgrave.jcb.3050087
2. https://masschallenge.org/articles/trends-in-biotechnology

Cite this article:

Gokula Nandhini K (2023), Risk Management in Biotechnology Innovation, Anatechmaz, pp.165