Risk averse

Every business owner, investor or risk manager would like to be able to predict the possible risks their businesses face and the probable outcomes of their strategic decisions – and then be able to select the best direction to take.

by Richard Willsher, World Business

Sadly, SmithBayes corporate software product (smithbayes.com) cannot do this but it can lead its users a number of steps down the right track.

In essence the product is a decision-making platform for handling a broad range of risk and reward metrics available for a product, a business, a portfolio of brands or other business activity facing an uncertain future. It applies a series of tests and calculations to the project and provides a variety of possible outcomes.

SmithBayes’ CEO Simon Williams explains the basis for the tool: “Businesses have to live with an unrelenting pace of change and there is a need for strategic decision-making to be ever faster. They may be risking a great deal in terms of money, revenues or brand impact so getting things a little bit right or a little bit wrong could have a huge impact. Take telecoms or pharmaceuticals or aerospace, industries that make big bets on future market conditions. For a telco it's: which bit of the convergence do you want to bet on? If you’re in aerospace and developing a new jet engine, how do you respond to the technologies that you’re going to have to incorporate in your engines over the next 5-10 years? How are you going to respond to government regulation, noise and pollution issues, for example?

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