Effective risk management is performed continuously throughout the life-cycle of a system or project. Mitigating those risks successfully means consistently performing, at both the project and organizational levels, activities such as these are:
- defining the scope of risk management to be performed
- defining your strategies for risk management
- identifying risks according to those strategies and throughout the project as new risks develop
- analyzing the risks and the priority in which to apply resources to monitor these risks
- defining, applying, and assessing risk measures to determine changes in the status of risk and in the progress of the monitoring activities
- applying appropriate actions to reduce or avoid the impact of risk.
Investment Due Diligence
Approximately 3 in 10 businesses receiving venture capital become successful enough to gain the expected return on investment. For software companies, the forecast is worse: 1 in 10.
The rigour for due diligence most often consists of a paper audit, interviews with the executive management team, a review of the financials, and a market analysis of the product or service. Traditionally, there has been no thorough measurement or analysis of the organization's operational performance - and no other way to measure risk or to forecast the likelihood of success based on the efficiency, effectiveness, and profitability of the management system.
Investors in software companies have fared even worse. It's well known in the industry that the quality of the software wholly depends on the quality of the processes used to develop it. That's why the US department of defence, Health Canada, and the FDA all require evidence of process compliance whenever software is life-critical.
Many investors know the markets, but have little technical expertise in software engineering. A software product may look good, but how sound is the architecture when considering future releases that incorporate user-generated enhancements?
Maintenance consumes most of a software product's life. It's when the return on investment is supposed to be captured. But unless the software was engineered appropriately, using a sound development process, the organization may see its profits depleted by severe defects, ongoing fixes, and patchwork code that results in high customer support costs, all of which are attributable to process.
Now, the capability of an organization deliver can be measured through the use of empirically-based process measurements. What this delivers to investors and to senior executives is an accurate view of just how well the company's processes are being managed, how efficient they are, and how likely they are to encounter internally- or customer-generated crises in the course of daily operations.
You can now look into the future of your investment and see how this major component will affect it. Call us to learn more.
Most organizations think they perform due diligence and risk management adequately, until it's time to mobilize a business continuity plan. That's when they realize they have access to only outdated information, incomplete data and records, unworkable strategies, and unprepared employees.
The losses incurred during attempts at business resumption can be debilitating.
How up to date is your business continuity plan?
How long would it take you to restart your business in the event of a disaster?
How much would it cost you for each day you were down?
Don't wait until it's too late. Be proactive. We can help.
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