Risks in the investment project - Reliability of construction sites and human life safety

7.2. Risks in the investment project

Investment projects can be classified into three main types.

The first type is subdivided according to the purpose of the project, where it is possible to distinguish the following types: technical, organizational, economic, social and complex.

In the second type, divided by classes, subtypes are usually distinguished according to the following characteristics: by composition, structure and subject area.

There are also a monoproject, a multiproject, a megaproject. A single project is understood as a separate project of various purposes, type and scale. Multi-project is a complex project consisting of a number of mono-projects and requiring the use of multi-project management. Megaproject includes targeted programs for the development of regions, industries and other entities, which included a number of mono- and multi-projects.

The third type of project is related to its scale (size, number of participants and the degree of influence on the surrounding world). In accordance with the scale, the projects are conditionally divided into small, medium, large and very large projects. The scale of the projects can be considered in a more concrete form - national, interregional and regional, intersectoral and sectoral, corporate, departmental, single-company projects, etc.

In terms of duration (duration of the project implementation period): short-term (up to three years), medium-term ( from three to five years), long-term (over five years).

Complex projects are simple, complex and very complex. The nature of the project's subject area allows you to select its type: investment, innovation, research , educational and mixed. Investment projects are usually understood as projects that require investments, the main purpose of which is the creation or renovation of fixed assets.

Based on the scale (size) of the project, timing of implementation, quality, resource constraints, location and conditions of implementation, a group of so-called special projects is classified in which one of these factors plays a dominant role and requires special attention, while the influence The remaining factors are neutralized with the help of standard procedures for control and risk management. In accordance with this classification projects are:

a) small in scale, they are simple and limited by the amount of resources involved;

b) Megaprojects - target programs of different levels (international, state, national, regional, intersectoral, sectoral and mixed), containing a number of interrelated projects; they are united by a common goal, allocated resources and time allotted for their fulfillment;

c) short-term projects;

d) defectless projects (high quality);

e) monoprojects and their alternative - multiprojects (when the client's project design refers to several interrelated projects).

The systematization of projects in general form is presented in Table. 7.1, where are given the characteristics by which they can be identified.

Table 7.1. Classification of single projects

Classifying attribute

Classification by content

Assignment

Classifications

Features of use in risk assessments

By type of activity

Technical, organizational, economic, social, mixed

Specificity of the project content

Risk ranking, identification of risk reasons

Fit

Small, medium, large, very large

Information Base Detail Level

Specificity of the source of information for risk analysis and evaluation of the consequences of manifestations

By scale

Interstate, international, national, interregional, regional, intersectoral, sectoral, corporate, departmental, one enterprise projects

Specificity of project development and management

Analysis of the consequences of the manifestation of risks and methods of risk management

Duration

Short-term,

medium-term,

long-term

Structuring the project lifecycle

Diversification of risks by the degree of reliability of forecasts

By complexity

Simple, complex, very complex

Specificity of the project management process

Complexity of risk management structure

By nature

Object

areas

Investment, innovation, research, teaching and education, mixed

Specificity of the life cycle of the project and accounting for benefits

Identify the causes of the risks and consequences of their manifestation

Based on implementation

1. Introduced into an existing enterprise

2. A new enterprise is being created

Correct calculation and comparison of incremental income and cost flows

Sources of information for risk analysis. Identifying risks

Mixed - by dominant feature

Small, megaprojects, short-term, mono- and multi-projects

Specificity of using standard project management and control procedures

Risk ranking and choice of ways to neutralize non-dominant risks

Two projects are considered mutually exclusive, if the profitability of the former is reduced to zero in the case of accepting the other, and vice versa. Another name for such projects is alternative, since these two projects are designed to achieve the same goals, and it is impossible to simultaneously accept them and profitable to implement. Two projects are called conditional if the profitability of each of them without taking the other is zero. In this case, the conditional relationship is not always symmetrical. Independent are two projects, if acceptance or rejection of one of them does not affect the profitability of the other. Substituting refers to projects for which the profitability of one decreases (but does not completely disappear) when another is accepted. This ratio can be either symmetric or asymmetric, and substitution can occur on both the cost side and the benefit side.

To synergistic (collaborative) include two projects for which the adoption of one of them increases the profitability of the other. This ratio can be either symmetric or asymmetric. In addition, an increase in profitability can take place both on the side of costs and on the side of benefits.

In each of the listed varieties of the investment project should be thoroughly studied and qualified from the point of view of reasonable economic feasibility, with the required reliability, durability and safety.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)