The role of risk management in industrial service business

It is widely stated that there is an ongoing transformation process towards more a service-oriented business in the networked environment. From the manufacturing company's point of view, new risks can emerge and old ones can change during the transition process. There is, however, not enough research information concerning the risks and the role of risk management relating to the circumstances of extending the service business. In this paper, some considerations about the suitability of formal risk management practices in those circumstances are made. This paper summarises some findings from four ongoing projects. The findings are analysed together with the literature viewpoints in order to outline a preliminary framework, which describes the study needs in the field of risk management in industrial service business. On the basis of the synthesis, it is concluded that the transition process itself might trigger the need for more flexible risk management process.