Matching the Validation Process to the Risk

"Risk" needs to be matched to the "Value" of the investment being sought.

The sample best practice matrix includes four levels of risk and at least four levels of capital investment values:

The risk categories should be based on the type of project being proposed.

The key to assessing the initial risk is to look not only at the cost benefit of the investment but also at those parameters that are more difficult to assess, such as validations of growth and anticipated future incomes.

Where no extra income is generated from renewal, the organization may make the investment against the less tangible benefits of improved customer service, regulatory compliance and reduced maintenance.

The organization should develop an authorization process matrix similar to: