Technical risks (sometimes also technological risks or innovation risks) in risk management is a term that refers to the type of business risk. These are the risks caused by the use of new or untested technologies or technical equipment or means of production. Technical risks exist due to the constant development and innovation, and arise from the introduction of new products to the market.
An example may be a technical defect in the car, because of the carmaker is forced to convene customers of a certain car series on a repair structural or material defect that wasn’t undetected in time.
Technical risks in practice: Technical risks can be prevented or quickly identified through a series of quality management methods (e.g. Six Sigma, Poka Yoke), which the producer complies from development to launching a new product. Also training and familiarizing or workers or customers is a good prevention against technical risks.