The greatest risk to the research and development department is therefore a loss of creativity, innovation, and accurate estimation of market trends. Internal factors that could influence these functions include stress. Employees who are required to be innovative and creative on a constant basis may suffer from burn out and stress, severely affecting their work. Internally, the demands of the department may therefore affect employees adversely. The rest of the organization is then affected in terms of product quality. When research and development are not carried out effectively, new products and services may not meet market demands in a sufficiently targeted manner. The result is then financial losses to the company, as the market interest diminishes. Furthermore, threats from competitive companies are increased when the research and development department does not function on an optimal level. The rest of the organization is then at risk of financial hardship, which may affect individual employees in terms of job cuts. This in...

Factors that can influence the internal well-being of this department include deadlines, the quality and timeliness of parts arriving on the site, and employee stress factors. When the parts arriving at the department are not of optimal quality, this reflects badly upon both the department itself and the organization as a whole. This results in a poor public image of the company as a manufacturer of inferior quality goods. Manufacturing employees who are under severe stress in terms of deadlines can also contribute to a lack of product quality, as they tend to be unable to deliver a sufficient quality of work.
Individual department management is vital to the well-being of the whole company. Each department manager should be fully aware of this.