Risk Management in Value Networks

The primary contribution of this chapter is to illustrate different approaches to risk management in value networks. We present different theoretical backgrounds for analyzing networks and illustrate some examples of the analyses that can be applied to support risk management at the network level. 

As the example above demonstrates, risk analysis in value networks is a complex process. The primary purpose of risk identification is to provide a complementaiy view of the key uncertainties in the industry. That way it is possible to address the motives and scope of actions of different actors. It is also essential to analyze the possible strategies for managing the identified risks and uncertainties at the network level. Here, a certain actor may be able to manage a risk which is beyond the control scope of other actors in the value network. 

Business ecosystem theory is closely related to the value network risk management consideration. A business ecosystem can be oirtlined as the enviromnent beyond the core business and the value network. Sometimes the term business ecosystem has been used more as a conceptualization or analogy to value networks. As defined by lansiti and Levien (2004), the business ecosystem can be seen as interdependencies between several business actors and the business environment in which they operate. 

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