Answer: manage risk through diversity.
Step-by-step explanation:
Innovation is the process of transforming new ideas into new offerings which includes products, services, branding concept and processes which will help a firm grow.
Due to changing customer needs, organizations include products, services, processes, branding concept to their offerings which allow the firm to effectively develop and deliver value more and keep its customers from getting bored with products and services the firm's currently has.
Through innovation, organizations also create a wider portfolio of products, which enable them to manage the risk through diversification and improve the value of the firm better than that of a single product because organizations with multiple products and services can withstand external shocks better.