Reports CTRM Value Survey and Anaysis | Page 9

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 latest software investment.

Return on Investment = (Benefits - Costs) / Costs

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