Technology Risk Management Primer for Portfolio Companies ( Part 1) Private equity and venture capital firms often face the threat of risk within their portfolio companies, but are not always certain of their portfolio firm’s competency in this area. Risk Management within Information Technology is especially critical as it affects all operations as well as the eventual valuation of the portfolio investment. CSC, Inc. specializes in helping investment firms make the best technology decisions for their portfolio company’s technology needs. This article serves as a primer for PE & VC firms who must ensure that their investments are secure and may need to proactively engage the IT management of their portfolio company. This primer can act as a template for those IT managers that are tasked with developing an IT risk management plan and who need guidelines for the process. It will also provide examples of how t...
Posts
Showing posts from 2023
Mitigating the Technology Risk of New Ventures
- Get link
- X
- Other Apps
Tech Venture Capital firms are tasked with sourcing the best companies with the most competitive technologies; however, they face the challenge of confirming the viability of their technology investment. VCs need to focus on verification of the target company’s proprietary platform as well as its infrastructure to ensure success. A good overview for understanding the technical due diligence needs is covering both Software / Hardware appraisal of all proprietary technologies is provided: Software code and language review including Web 2.0 platforms Scalability & compatibility assessment Competitive landscaping in direct sector Identification of risks and potential costs within target firm to reduce post-closing surprise expenses Existing technology infrastructure and operations evaluation to determine “IT health” of business-technology alignment Overall, it is critical to remember that the underlying infrastructure a firm uses to implement its key strategy will define how successful...