You’ve spent over 18 months implementing a CTRM system. Millions have gone into vendor fees, consulting hours, internal costs, and change requests. Yet the outcome is far from what was promised. Either the system never went live or even with the new system, traders still depend on spreadsheets, reporting remains manual, and even small changes require weeks of development.

At this point many organisations feel trapped.

“We’ve already spent so much on this system. We cannot change system now. Let’s just pretend the system is working and providing us value.” they tell themselves.

This mindset is a classic example of the sunk cost fallacy.

In this article we explore how this cognitive bias keeps companies tied to underperforming CTRM systems, the real costs of staying put, and how leaders can break free with minimal disruption.

The sunk cost fallacy explained

The sunk cost fallacy happens when decisions are guided by past investment instead of future value. In other words, because time and money have already been spent, organisations feel compelled to continue, even when evidence suggests the project or system isn’t working, unlikely to work in the future or underperforming.

Savvy vendors also know that once a client has invested significant resources, they’re hesitant to walk away. So, organisations would put up with delayed delivery timelines, stretched implementations, and extra bills for change requests, hoping that with the extra money and resources invested, they would eventually get a system that works. More often than not, in the end they did not get a usable system or got one that does not provide even half the value it promised.

Signs that you may be in a sunk cost trap:

• Implementation timelines repeatedly extended with vague justification.

• Frequent and expensive change requests

• Frequent reliance on spreadsheets despite having a live CTRM

• Inability of the system to accurately model your deals and / or properly disaggregate your positions

• Lack of transparency from your CTRM vendor

• Growing dissatisfaction among users

The hidden costs of staying with a bad CTRM system

Getting a new system is no doubt expensive but continuing with a failing system is rarely the cheaper option. The costs of staying include:

• Direct financial costs: Ongoing licence and support fees for a system that does not deliver.

• Productivity losses: analysts and operators wasting hours on manual reconciliation.

• Compliance risks: inconsistent reporting, fragmented audit trails, and higher error rates.

• Opportunity and business cost: there is a business reason why organisations want a CTRM system. Think of what organisations are losing in terms of business opportunities hampered by a system that does not provide real value to their business.

Over time, these costs dwarf the perceived “savings” of sticking with the status quo.

Choosing the right vendor

Breaking free from sunk costs requires reframing the decision. Past spend is gone; the question is what choice will deliver the best returns from today onwards.

When evaluating alternatives, asking the right questions helps avoid repeating mistakes:

• What is your typical implementation timeframe for clients like us?

• Can you provide references and case studies of successful projects?

• How do you structure costs and avoid hidden extras?

• How do you manage upgrades and ongoing support?

• How configurable is the system without extensive coding?

A reliable vendor should be able to demonstrate a consistent, low-risk implementation approach that delivers value quickly. Do not hear from the market – get real direct feedback from the vendor’s existing clients. They are in the best position to provide you with feedback direct from the users.

Your best investment may be to start fresh

Past investments should not hold your business hostage. The true cost of staying with a failing CTRM implementation or underperforming CTRM is often greater than the cost of switching to a proven solution that delivers within a reasonable time frame and scales with your needs.

Yet it takes bold leadership with a strategic mindset to see the big picture and takes calculated risks to find a new CTRM vendor.

If you are ready to explore a different path, book a demo to see what a low-risk, modern CTRM could look like for your organisation.