Design Risk Management-The Guarantee of Product Innovation

English designer Michael Ferry coined the term "design management" in 1966. The term is gradually accepted by company management after more than half a century of development and refinement. However, its importance has yet to be recognized The ultimate value of industrial design lies in the general publics understanding and acceptance to the product. The process of accepting a product lies not only in the consumer's fulfillment of their materialistic demands, but more so in the fulfillment of their spiritual needs. Therefore, product innovation is essential. At the same time, such innovation brings the element of risk to the process. This article analyses the avoidance and legal issues of design risks in order to emphasize the importance of design management and its implementation. It also discusses the economics of risk management analysis and risk management tools in order to demonstrate its effectiveness in mitigating possible risks and achieving the ultimate objective of design management: making designs better at serving enterprises, and creating greater worth.