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Published on: 6/2/2009
Last Visited: 6/2/2009
"Mistakes have become intolerably expensive," said Dee Smith, CEO and founder of SIG, which has its beginnings in 1995.
And since mistakes are so expensive, it's more and more important that companies be well-equipped to make decisions that aren't going to backfire later, he said.
Smith has a background in research and analyzing information, from music theory, geology, deciphering hieroglyphics and various national and international work, including venture capital.
Born and raised in Fort Worth, Smith created Strategic Research & Development LLC, the full name of SIG, at a time when data was becoming more easily accessible via the Internet, which was gaining momentum.
Today, the company operates in more than 65 countries and has part-time employees across the globe.
It's unveiled a new product for companies to gauge how vulnerable to fraud they may be - because most fraud is perpetrated from within a company, Smith pointed out - and business has increased as the economy has declined.
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Johnson and Smith pointed to the fraud stress test as an example of reactive behavior on behalf of companies.
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Instead of proverbially closing the barn door after the horse runs out, Smith said, SIG's pinpointing offers clients an opportunity to make definite steps to be more secure.
Paying a fee for SIG's services pales in comparison to paying for investigation and legal fees on top of losses in the future, he said.
"The saying 'The devil's in the details' - it's absolutely true in our business," Smith said.
Details on their own aren't much of a help, though, Smith explained.
The key to SIG's approach is to come at a subject from every angle possible and then look for patterns or indicators in the web of information.
Taking this wide approach to a topic, such as not only looking at a potential company for investment but also the leader of the company, gives better insight.
For example, a potential company may check out, but a wide approach may reveal the leader has a history of personal bankruptcies and throw up a red flag to an investor.
By using a specific methodology and employing analysts who have background in research - like ex-law enforcement officials or government employees - SIG is able to provide a product that is unique and doesn't rely on off-the-shelf data, Smith said.
All of the data it obtains is legal, and nothing underhanded happens in the course of research, but the company has discovered shady situations in the past, he said.
In light of the recession, though, Smith said everybody seems to have realized how success requires caution.
"None of us has, in this economy, the luxury of thinking nothing will happen," he said.