Financing growth
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Presentation by EIT Digital Rennes (France), at the FogGuru training Growth and Harvest in April 2020.
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Financing growth
- 1. Slide 1 Business growth – Financing growth FINANCING GROWTH Business growth – Financing growth _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 2. Slide 2 Business growth – Financing growth “If you aren't mad about the rejection, you didn't invest enough into the process.” Darnell Lamont Walker Writer, artist _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 3. Slide 3 Business growth – Financing growth Financial issues of a growing business _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 4. Slide 4 Business growth – Financing growth Stages of growth _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 5. Slide 5 Business growth – Financing growth Strategy & resources • Money comes… Second! • Your strategy defines the resources, not the other way around • Finding the resources can be a challenge • Misunderstanding your objectives is much worse _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 6. Slide 6 Business growth – Financing growth Finance & strategy • The financial objectives are about value, flows and operations • The strategic objectives are about market and competition • But of course they are 2 sides of the same coin • A balanced scorecard can be the right tool to combine both _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 7. Slide 7 Business growth – Financing growth Balanced scorecard (example) x% sales increase z% market share y% sales of new products w% profit margin u €/share v% more geographic coverage Objectives must be broken down at all levels _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 8. Slide 8 Business growth – Financing growth Working capital requirement What your clients owe you What you invested in your inventory What you owe to your suppliers Working capital requirement • You need money to make money • And it is not just your fixed assets _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 9. Slide 9 Business growth – Financing growth Selecting the source of funds Type of funding Control Resource Availability Bootstrapping Yes Limited If profits Equity No Abundant If value Debt Yes Capped If assets _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 10. Slide 10 Business growth – Financing growth Investors Love money Business angels Private investors Crowdfunding Family offices Funds Public investors Banks Stock markets International investors _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 11. Slide 11 Business growth – Financing growth Love money • Family, friends, close relations… • These people support you more than your project • Amounts are limited unless you have wealthy relatives • Typically dormant investors • Conditions are often civilized… But your family life is at stake _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 12. Slide 12 Business growth – Financing growth Business angels • Often former or current entrepreneurs • They usually offer money and expertise • Conditions are professional (rates, deadlines) • They can invest individually or collectively • The quality can be variable • Some angels can be dark ones… _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 13. Slide 13 Business growth – Financing growth Accelerators • Accelerators can help you through a deal • Services and advice against shares • You get help and save cash • But you lose some control _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 14. Slide 14 Business growth – Financing growth Private investors • Some investors are just people • They are not necessarily organized to invest • They can just happen to have money • There is no rule about how to find them or how to strike a deal with them _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 15. Slide 15 Business growth – Financing growth Crowdfunding • The principle should be the same as the stock exchange • It was made possible by a dramatically lower cost of transaction • People can support highly risky ventures because they invest small amounts (long tail) • You can only raise significant money with a community around you • The relationship with this community can be long-term • So crowdfunding can be used at various stages of your development (in a succession or one-shot) • Platforms act like brokers • Some are specialized and can be real advisors • Others are basically online apps _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 16. Slide 16 Business growth – Financing growth Family offices • Some people must invest money • Would it be only for fiscal purposes… • They might not be interested in the process, so leave the money to go-betweens • The process is strikingly similar to funds • But there might be preferred sectors, pet projects… _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 17. Slide 17 Business growth – Financing growth Investment funds – Venture capital • The elephants in the room of professional investment • Various types: venture, hedge, mutual, pension, corporate, sovereign… • Some are specialized (IT, energy, high tech…) • Amounts can range from hundreds of thousands of euros to tens of millions • The exit time is usually a few years in risk capital, sometimes more in development capital _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 18. Slide 18 Business growth – Financing growth Corporate funds / corporations • Corporations can invest in businesses directly or through funds • In the latter case the aim is supposedly as financial as strategic • Activities are closely related to the company’s strategy • It is often a way for companies to outsource innovation _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 19. Slide 19 Business growth – Financing growth Banks • Banks are more used to lend than to buy stakes • However they can be keen to support high growth business • They often do it as a supporting partner (with others) • Of course they expect a close partnership on financial activities • Banks are often active as investors through funds • There is a great diversity in national approaches _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 20. Slide 20 Business growth – Financing growth Stock markets • The IPO is often viewed as the ultimate stage of development for a startup • However it is neither a goal nor an inevitable step • The legal framework is very different from other forms of fundraising • The obligation to disclose information regularly also changes a lot of things _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 21. Slide 21 Business growth – Financing growth Public investors • The European Union, national agencies and local communities can get involved in funding • Although they are much more active in loans and subsidies, buying stakes can be an option • Usually some strategic activities are targeted _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 22. Slide 22 Business growth – Financing growth International investors • All categories of investors can also be found worldwide • Sometimes it makes a lot of sense (US investors for some company profiles or technology, investors in targeted markets, investors looking for French companies…) • On one hand things are going to be more complex • On the other hand, if you are ready, competition can be easier to handle • But there should be a lot of thinking about the long term relationship & commitment _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 23. Slide 23 Business growth – Financing growth Compatibility • It is often difficult to find enough money with one investor • But pools are not always easy to manage • A bank can get along with another bank, or a fund with a fund • Yet a corporation can be uneasy with a fund or another corporation • Goals can be different, or approaches • Even if things are clear at the beginning, they change… _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 24. Slide 24 Business growth – Financing growth Smart money • What kind of investors are you looking for? • Some might give you money without really understanding your business • But once on your board, they can make decisions • It’s difficult to lead when people don’t even get your explanations… _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 25. Slide 25 Business growth – Financing growth Where investors are • Investors are also part of ecosystems • Smart money can be located in business clusters • Or simply in financial powerhouses • Anyway there are not necessarily in your country _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 26. Slide 26 Business growth – Financing growth Short term / Long term • Making money is a must, preparing the future also • Balancing both is often difficult • Dividend or share value? • Cash or investment? • In doing business, the short term is transactional: selfish and secretive • Conversely the long term is about partnerships: let’s grow the cake together Business growth – Financing growth _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 27. Slide 27 Business growth – Financing growth Forecast needs and secure finance of a growing business _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 28. Slide 28 Business growth – Financing growth Business plan & financial planning • Financial projections should be thorough and exhaustive • Usually scenarios or safety margins are a discussion topic • Use an accountant for compliance, not for the content • An expert in business finance (not bean counting) can be nice _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 29. Slide 29 Business growth – Financing growth Competitive advantage • VRIN Team • Profiles, hiring plan, advisors… Achievements • Sales, products, references, awards, partnerships… Financial plan Needs • What we raise the money for Problem • As big, acute, unexpected as possible Solution Business model • Or value proposition… Market • Segments, burning need… Competition • Significant but vulnerable _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 30. Slide 30 Business growth – Financing growth The French pitch • Explanations • Limited risks • Limited risks _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 31. Slide 31 Business growth – Financing growth The American pitch • Huge problem • Great solution • Unfair advantage • Big bucks _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 32. Slide 32 Business growth – Financing growth The elevator pitch • The entrepreneur must be able to convince in less than a minute • First to hook investors and partners, then customers • If this does not work, the rest might not follow • It’s just part of the drill _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 33. Slide 33 Business growth – Financing growth The mindset _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 34. Slide 34 Business growth – Financing growth Story telling • Yes, it’s a battle to win the hearts and minds • You can’t expect to raise money out of sleepyheads • Even if your idea makes financial sense, it also has to be inspiring • Investors know you will need to convince many other people Business growth – Financing growth _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 35. Slide 35 Business growth – Financing growth The speaker Business growth – Financing growth _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 36. Slide 36 Business growth – Financing growth Props & demos • Take chances only if it’s worth it! • And rehearse… _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 37. Slide 37 Business growth – Financing growth Establishing profitability & cash flow control _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 38. Slide 38 Business growth – Financing growth Financial monitoring Understanding the financial situation of a growing business is particularly important • Because many things are changing simultaneously • Since inertia, disruptions, thresholds, delays and unexpected events can collide Financial monitoring should include • A sound system of collection and analysis of data (including effective dashboards) • Objectives, range, limits on various relevant criteria • Regular discussions between leaders, managers and experts • Formal interpretation (including the use of ratios or other tools) _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 39. Slide 39 Business growth – Financing growth Monitoring expenses Getting things done € Time Getting things done € Time Feeling good Feeling good too, if you’re just looking at figures Overspending _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 40. Slide 40 Business growth – Financing growth Profitability & Solvency • Making money is not making a profit • Closing excellent deals might not sustain your business now • Expenses and revenues are rarely synchronized • A business can be broke and profitable _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 41. Slide 41 Business growth – Financing growth Buffering Some financial elements are predictable (e.g. loan repayments) Others are adjustable (like investment) Some can be modelized (likelihood, amount and date of orders) Buffering can be key to stabilizing your business For instance you can schedule a budgeted investment, or new hiring, or the start of a subsidized project, in sync with an expected order, or the start of a new production _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 42. Slide 42 Business growth – Financing growth Evolution of costs Fixed costs Variable costs € Time Fixed costs Variable costs € Time Fixed costs Variable costs € Time On time Late Early _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 43. Slide 43 Business growth – Financing growth Risk management _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 44. Slide 44 Business growth – Financing growth Risk assessment method RISK LIKELIHOOD SEVERITY GRADE RANKING Delay Fault Conflicts Cost overrun Resources Changes 4 2 6 5 3 8 2 5 8 8 8 2 8 10 48 40 24 16 6 5 1 2 3 4 _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 45. Slide 45 Business growth – Financing growth Risk assessment method RISK LIKELIHOOD SEVERITY GRADE RANKING Delay Fault Conflicts Cost overrun Resources Changes 4 2 6 5 3 8 2 5 8 8 8 2 8 10 48 40 24 16 6 5 1 2 3 4 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 Impact Likelihood Delay Fault Conflicts Cost overrun Resources Changes _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 46. Slide 46 Business growth – Financing growth Understanding trouble The Ishikawa / fishbone / root cause analysis method • distinguishes between back luck and causes • Helps you to identify risks • Cannot be as scientific as it looks like… The 8 Ms Man Machine Material Method Measurement Mission Management Maintenance _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 47. Slide 47 Business growth – Financing growth Financial impact • Assessing the financial impact of a risk is complex • Mitigating that risk also has a financial impact • So we are dealing with compromises ❖ An insurance costs you ❖ A problem can affect your value but not your revenue (in the short-term) ❖ It can also affect the cost of raising money ❖ A problem might seem costly to fix for small consequences… At first glance ❖ A combination of problems can have unpredictable consequences ❖ A domino effect can quickly run out of control _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________
- 48. This training material is part of the FogGuru project that has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie grant agreement No 765452. The information and views set out in this material are those of the author(s) and do not necessarily reflect the official opinion of the European Union. Neither the European Union institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein.