EVC™ Framework

Quantifying, Measuring, and Enabling ENTERPRISE VALUE CREATION

Assessing Economic Risk
Assessing risk through a business case analysis is just as important as determining the bottom-line impact of an investment initiative. There are various levels of risk assessment techniques. Some are basic, and some are advanced and complex. The Enterprise Value Creation™ (EVC™) Methodology from Glomark-Governan, contained in the Genius™ Suite of software tools, allows organizations to conduct risk analyses at multiple levels to meet the various needs of risk assessment. The following are some examples:
  • The Genius Base and Genius Pro software tools facilitate simple risk analyses that can include most likely, worst case, and best case scenarios for any or all of the assumptions, benefits, costs and financial measures.
  • Glomark-Governan’s EVC Methodology includes risk assessment elements that many business professionals have not used before, but have a need for.  Take for example the Total Risk of Ownership (TRO™) Model, also contained in Genius Base and Genius Pro, that assists in assessing the “economic risk of no investment.” Often, investment decisions are made not on the economic impact of making the investment, but rather on the potential economic impact of “not making” the investment.
  • The Glomark-Governan Genius Analyzer software tool takes the uncertainty embodied in the range of all the assumptions and utilizes a Monte Carlo simulation to determine the overall economic impact of this uncertainty on the bottom-line of the business case. In addition to the overall impact, Genius Analyzer performs a sensitivity analysis to determine the individual economic impact of each assumption, benefit, and cost.
  • Business Cases are about “risk mitigation” – reducing risk by assessing it prior to an investment decision, and comparing the risks of different alternatives in scope and implementation strategies. Genius Compare allows for the comparison of multiple business cases (or multiple scenarios within the same business case) and helps in selecting the business case that has the best value and lowest risk.
  • Scorecards are a good way to manage projects successfully. Genius Track uses the scorecard approach to track operational performance indicators (OPIs) during and after project implementation, allowing the project team to take prompt actions if necessary, and minimizing the chances of project failure.
All of these Genius tools work together by using the same electronic files, therefore enabling the business case practitioners to save considerable time in value and risk assessment; and allowing the risk assessment process to be practical and effective.  In order to assist companies in developing a competence in Enteprise Value Creation and risk assessment, Glomark-Governan also offers training, certification, and a series of consulting and support services.