A new method of diagnosing risks in product-innovation projects is introduced in the paper. The method is an improvement on existing risk methods used on product-innovation projects, such as potential problem analysis and failure mode and effects analysis. Technological, organizational and commercial risks are identified and assessed on an individual basis. These risks are mapped in a risk topography which is used as an input for the drawing up of a risk-management plan. The method has been developed on the basis of case-study investigations, and applied in various product-innovation projects in the Netherlands and in Germany.