Reports Allegro CTRM Value Study Report 2014 | Page 13

CTRM Value Survey and Analysis

Determining Return on Investment (ROI)
Determining the return on investment (ROI) for a CTRM software acquisition can be challenging as one of, if not the,
primary drivers of such a purchase is risk reduction - including price, credit, regulatory, operational and execution
risks. Deploying a modern CTRM solution, like that from Allegro, will when compared to a spreadsheet or manual
process, reduce the risk exposures in virtually all areas of your business while simultaneously improving information
visibility and enabling better and more profitable decision making. Precisely valuing an avoided event is not possible,
but utilizing your company’s past experiences can inform the value you may or may not place on reduced risks and
can be an important determinate in valuing your software investments.
Other benefits can be more readily measured and are based on your company’s past and current experience in
utilizing software to capture deals, manage positions and risks, account for your business, and analyze and report
activities. Whether your most recent experience prior to implementing a new CTRM solution was the use of
spreadsheets, a custom developed solution or another vendor product, many of the changes in terms of costs and
benefits can be reasonably measured and used to calculate an ROI for your software investment.

Return on Investment = (Benefits - Costs) / Costs

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Commodity Technology Advisory llc

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