I think it's fair to say that it's counter-productive for more than one reason. That said, I think if you want to encourage risk taking, do it directly -- ince

I think it's fair to say that it's counter-productive for more than one reason. That said, I think if you want to encourage risk taking, do it directly -- incentivize it with money/prestige or hire more people who take risks (and give them free reign). In recent history more and more "labs"-type positions have been opening up at companies, with the aim being to lure in people who want to do interesting work. As an engineer, a labs position is 1000% more interesting to me than any other senior whatever position because of this ability to take risks and possibly reap large rewards (even if they go to the company). As far as your point about productive members producing more bugs, you can incentivize/dis-incentivize this by changing how you perform reviews. Incentivize productivity, but not at the cost of introducing more bugs. Shower cash/prestige/autonomy on developers that produce lots of features with low error-counts and people will optimize for that if that's what drives them.