Recent advances in Information and Communication Technologies (ICT) have exploded the potential for value creation in a variety of innovation ecosystems(Vilhelmson, 2006). The vast increase in potential can be attributed to two distinct underlying factors. First, ICT has extended the reach of more possible actors to the point where nearly any actor can be connected to any other and, as a result, geographic proximity is becoming less and less relevant (Boschma, 2005). Second, the responsiveness of one party in a relationship (to the needs of existing parties or the opportunities from a nearly limitless number of other possible parties) has become almost instantaneous to the point where time has become compress and essentially (a less differentiating factor( Nachira 2002, Boschma 2007). However, despite the vast size of the potential value that, ICT enables, we argue that it is likely that only a tiny fraction of this potential may be realized, unless and until relevant risks are anticipated and effectively managed(Fransman 2010). In this paper, we consider risk at two levels of a prototypical digital ecosystem: First is the level of possible interacting actors. Second is the level of those actors who contribute to the design, organization and maintenance of the ecosystem (Doloreux 2002, Asheim 2002). In each case, extended reach and quicker responsiveness enhances opportunities for greater utilization and better experience of any asset among the parties it also exposes various parties to greater risk. ( Adner 2006, Graca P. and Camarinha-Matos 2017). Accordingly, we apply a value creation-appropriation theoretical framework to consider the managerial challenges that risks pose. We develop a number of scenarios to illustrate how various risk mitigation strategies can influence not only who wins and who loses but also the amount of value that is likely to be created by the digitalized ecosystem(Basole 2015). Some prominent features of the relative dynamics, that our theoretical framework highlights will be illustrated by an agent-based simulation model. This model will comprise multiple agents that can interact according to their level of reach and responsiveness(Leavy and Adner 2012). By manipulating the extent of reach and the degree of responsiveness afforded to agents (a proxy of the level of digitalization) The study seeks to contribute to innovation ecosystems by focusing on the risks that the digitalization of ecosystems (Baldassar 2016) gives rise to (as a direct result of the value potential that it enables) and the inherent managerial challenges that may require a rethinking of the role of eco-system actors and even of non-actors that could be positively or negatively impacted.