AUTOMATED OR SEMI-AUTOMATED RISK ?
According to research conducted by Dorian Proksch , et al , in ‘ Risk management in the venture capital industry ’, venture capital ( VC ) firms are exposed to five variants of risk :
1 . Agency - arising from conflicts of interest between the investor and the company or individual being invested in .
2 . Financial - these are standard business risks associated with bankruptcy , poor liquidity or a lack of available ‘ exits ’.
3 . Market - competitivity , customer receptivity and the availability of marketing opportunities .
4 . Human - not just failure to perform essential tasks correctly , but also financial planning , managerial experience of the company being invested in , and a guidance of a larger vision from the VC firm .
5 . Failure - a combination of the preceding four categories and their overall impact on direction .
Given the abundance of risk factors in modern VC activities , a question arises : is it better to utilise cutting-edge data analytics and automation technology to remove and redeploy the human workforce , or is a more nuanced approach preferable ?
AUTOMATED OR SEMI-AUTOMATED RISK ?
Automation negates slower , less efficient and often more costly manual processes , cuts back on staff training costs and potentially frees up staff ’ s time to pursue more creative , valueadded tasks . KPMG says robotic process automation can reduce costs for financial services firms by up to 75 %.
39 fintechmagazine . com