Tetyana Marchuk (Ukraine)

Ph.D., Associate Professor at the Banking department

Kyiv National Economics University named after Vadym Hetman

 

Modern methodological basis of complex taxonomy of risks of investment-construction projects

 

Despite the great prospects and the opportunity to get significant income, investments in the construction industry, under such conditions, are quite risky. In order to stimulate the widespread use of energy efficiency projects in housing and communal services, it is advisable to create a risk management system for such projects.

In order to minimize risks, it is advisable to focus the main functions of management and organization of such projects in one organization - the developer company. The basic functions of such a company, performed by the relevant units, should include the following:

 - investment of the project;

- execution of functions of the customer of construction;

- performance of the functions of the general designer;

- execution of functions of the general contractor;

- further exploitation of objects.

When creating a risk management system for a development company, it is expedient to share all risks in the place of origin and the possibility of influencing the subjects involved in the project implementation.

 The external risks of the developer company include the risks that the state, consumers (the population), contractors (suppliers, subcontractors, etc.) and the natural environment determine.

Internal risks include risks arising from the organization of its functions - an investor, a customer, a contractor.

By the rate of influence, we divide all the risks into three groups:

1. the risks that the organization is practically unable to influence are the risks that are determined by the state and the natural environment;

2. the risks that the organization may affect, but with a significant rate of uncertainty - the risks that consumers and counterparties cause;

3. risks that the organization can almost completely control - internal risks.

Thus, the risk management system of the company-developer should be primarily aimed at the last two groups of risks. The development of risk prevention measures should be preceded by the identification of the main factors that give rise to risks at each stage of the project implementation [1].

For the risks of investment-construction projects with specific features, it is necessary to elaborate in detail the methodological basis, which will enable an integrated assessment of risks in the implementation of the project. The analysis of project risks is given below [2].

Project Risks

Characteristics of risks

The risk of project participants

This is the risk of conscious or involuntary non-fulfillment by members of their duties. Such failure by at least one party can create a "chain reaction" effect, creating the impossibility of fulfilling its obligations by all other project participants. These risks may be due to: the unfairness of the participants, their unprofessional or financial status, which has sharply started to deteriorate.

The risk of exceeding the estimated cost of the project

The reasons for exceeding the estimated cost may be: error in the design, the contractor's inability to effectively use the resources, change the conditions of the project, etc.

Risk of delay in commissioning the project

The reasons for the delay of construction may be structural failures and design errors, the contractor's failure to fulfill his obligations, as well as delayed delivery and non-completed equipment

Production risk

Due to technical or economic reasons, which mean increased costs due to erroneous calculation of electricity costs, environmental protection, as well as the shortage of raw materials and supply disruptions

Risk associated with management

The risk is associated with inadequate qualifications and low level of management

Sales risks

They are associated with changes in the market situation: with the movement of prices and changes in volumes of manufactured products markets, which may coincide with the forecasts

Financial risks

Contains the entire set of risks associated with financial transactions. These are exchange rate risk and interest rate risks

Political risks

These risks relate to the political and legislative activities of the state where the project is carried out. These are risks of expropriation, nationalization associated with repatriation of profits, changes in taxes, customs duties, etc.

Force Majeure Risks

Risks that are difficult to predict: earthquakes, fires, strikes, etc.

1. Vakolyuk A.С. Risks of implementation of investment and construction projects for integrated thermo-modernization / Management of complex systems development. sciences works, issue number 20, 2014. - pp. 15-20.

2. Mayorova T. V. Investment activity: textbook / T. V. Mayorova. - Kyiv, KNEU: Center for Educational Literature, 2009. - 472 p.