Risk management of startups is driven by special features of new ventures in terms of limited resources, coherence of influence and the entrepreneurial development and growth process. This article characterizes startups this way and derives conclusions for their risk management.
Since risk management for startups cannot be separated from the planning and design of emergent growth processes, new venture growth dynamics are set in the respective context. Conventional planning as of established companies, aimed at increasing efficiency and optimizing processes, is less suitable for startups. Instead, customer-oriented product development with feedback loops is more appropriate for their risk management. Validated learning and pivoting help to limit uncertainties in the business model, minimal viable products enable low-risk development. This points the way towards lean lisk management for startups based on the lean startup method.