When Competition and Innovation Lead to Litigation: The Critical Role of Risk Management
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Authors
Jake Lasceski
Issue Date
2026
Type
Language
Keywords
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Abstract
In “When Competition and Innovation Lead to Litigation: The Critical Role of Risk Management,” Jake Lasceski examines risk management, organizational culture, and court cases to understand their influence on business practices. The central statement of the essay is that poor risk management causes harmful business and societal outcomes, especially when innovation and profit needs outpace legality, exposing firms to litigation and reputational damage. The four key pillars—innovation, competition, litigation, and risk management—are supported by a theoretical analysis. Lasceski draws on peer-reviewed research to understand these topics and complements his discussion with real-world court cases. After the initial overview, in-depth case studies from Boeing, Theranos, and the hoverboard industry highlight the importance of integrating risk management into organizational culture. Most disasters originate from competitive dynamics. When organizations aim to increase market share and outperform competitors, they tend to act aggressively. For example, the essay examines Boeing’s 737 MAX crashes, which occurred after the company developed the aircraft in response to Airbus’s A320neo. To stay competitive, companies must innovate their products, but they must also manage risks to protect product development and launches. Following the crashes, investigations revealed numerous internal issues. This led to litigation, with Boeing facing multiple legal challenges against the company and key individuals involved in the aircraft’s production and testing. The other case studies, like Boeing’s, further illustrate different ways risk management can fail an organization, leading to different detrimental outcomes for both companies and industries. The evidence from the research and the case studies supports the main argument that poor risk management is a systemic organizational issue that leads to serious legal and societal consequences.