Risk analysis using extended SAFMEA methodolody on example of incubated companies

Abstract

The paper examines the use of the Failure Modes and Effect Analysis (FMEA) methodology – in variant of statistical FMEA (SAFMEA) on the risk factors of incubated technological companies. Each risk factor were evaluated by mentors / management of chosen business incubators by using the Severity, Likelihood, Detection (conventional) and Influence of mentor (enhanced) parameters. The results are shown in different perspective – by using risk priority number (RPN) indexes, risk matrix and risk map. As the most significant risk factor was identified Funding issues - cash flow (followed by Customer acquisition issues and Funding issues – capital). However the results also show very high level of variance within the answers of the respondents. The paper also examines the impact of the enhanced nonconventional parameter (Influence of mentor) on the RPN index results where it was identified that some risk factors (such as Issues with business model) can be substantially reduced by the influence of the mentor / consultant.