Even though some corporations are using the best management software currently available in the market, problems still persist. In January of 2008, Societe Generale announced its own fraudulent trading, 13 years after the collapse of Barings Bank. But why does this continue to occur? Could it be an issue of existing management software not being as effective as it claims?

Lessons learned from observing company collapses have experts agreeing on the unfortunate reality that a risk-prevention system that is unable to adapt to the rapid changes of today’s world is useless and quickly becoming obsolete. Depending on risk-prevention systems that are out-of-date can be dangerous to a business, and any efficient method should be able to change as the business world evolves.

The ReCon Lab’s primary mission is to address the critical needs of today’s companies and to prevent the recurrence of similar disasters. As such, the ReCon Lab team includes experts like Professor Edward Shum, who introduced C3E “Governance System”. (Command/Control/Coordination/Execution).

In 1982, Professor Edward Shum was invited to work for the National Aeronautics and Space Administration/Jet Propulsion Laboratory (NASA/JPL) while he was attending at UCLA for his degree in Computer Science. In this esteemed position, he was involved in many technologically advanced space-exploration projects such as the “STAR WARS Project”.

Later on, he was recruited by the Tiger Team in 1984. The Tiger Team was established at the time when American military began to see the need to use information technology to resolve certain following issues:

• How can we monitor and oversee all military processes?
• How can we ensure that all information is true and precise?
• How can we simultaneously convey/transmit information and enhance the overall efficiency of command?
• How can we ensure that commands are executed completely and accurately?
• How can we ensure that headquarters transmits and receives all types of information that can be handled in a timely manner?

The purpose of these questions was to ensure that military commands, execution, and results would be in alignment, and the goal was to allow for immediate correction of mistakes, should they occur. This is core of ideal risk prevention.

The Tiger Team eventually developed the famous C3 (Command/Control/Communication) control system. C3 is a Governance System, in which users can achieve the goal of enhancing “risk prevention” by using principles based on specific organizational structure, practiced military rules, and well-defined authority and responsibility. It ensures that information is accessible and transparent to the appropriate authorities, and allows projects to be accomplished under efficient control.

After resigning from NASA/JPL and starting his own entrepreneurship in 1988, Professor Shum began to re-develop the “Top-Down” business management system. He saw that the existing “Down to Top” management software was ineffective in the area of risk-management, as authority figures were unable to oversee all project processes. Furthermore, due to inaccessible information, he recognized that risk-prevention could not be managed properly and other issues could not be resolved completely.

Following a considerable period of intensive research, Professor Edward Shum announced that an enterprise has to be fully aware of the importance of “Governance” in order to strengthen a risk prevent system. With Professor Shum, the ReCon Lab is devoted to developing this state-of-the-art global technology and providing total solutions in the area of IT Governance.