Implementation Risks in Investment Projects on Boosting High-Tech Business Production Capacity: Analysis and Management
Implementation Risks in Investment Projects on Boosting High-Tech Business Production Capacity: Analysis and Management

Summary/Abstract: The classification of the changes in the forecasted conditions of the production capacity development projects have been suggested including changes in demand for the product, changes in the product mix and in the production technologies. Quantitative evaluations of potential losses under different types of changes and relative to the stage of the investment project implementation have been obtained. Adaptation to the changes under analysis can require considerable costs; the changes can entail irrecoverable loss of the invested capital. Thus, at the investment stage, the project is exposed to major risks. This study takes into account sector-specific conditions of the aviation industry including technological structure of capital investments, time structure of the investment stage of the production capacity development projects and the technological affinity of different types of products. Based on the obtained evaluations, the most important types of risks have been identified for each stage of the project implementation; the recommendations have been developed on managing these risks both tactically and strategically, particularly, by means of selecting the technologies that are less exposed to that or another type of risk. The analysis has been carried out to estimate the effect produced by the technological levels of the production facilities.

• Details
• Contents