Sample interview questions: How do you assess the potential risks and returns of investing in technology infrastructure projects?
Sample answer:
Assessing Potential Risks and Returns of Technology Infrastructure Projects
Risk Assessment:
- Technology Obsolescence: Evaluate the rate at which underlying technologies may become obsolete, impacting project value.
- Cybersecurity Threats: Assess the susceptibility of the infrastructure to cyberattacks and its potential financial and reputational impact.
- Vendor Dependence: Analyze the reliance on specific vendors for project implementation and maintenance, and their long-term financial stability.
- Project Complexity: Consider the scope, technical challenges, and experience of the project team involved. Complex projects may face higher risks of cost overruns and delays.
- Regulatory Compliance: Ensure compliance with applicable regulations and industry standards, as non-compliance can lead to fines and project delays.
- Political and Economic Risks: Assess potential geopolitical events, economic downturns, and regulatory changes that could impact project viability.
Return Assessment:
- Revenue Generation: Evaluate the potential for the infrastructure to generate revenue through traffic, data analytics, or other commercial activities.
- Cost Savings: Consider the potential cost saving… Read full answer