MODERN METHODS AND TOOLS FOR REGULATION OF PROJECT FINANCE RISKS
Abstract
This article presents the author’s own classification of risks for projects realized on the project finance principles. The classification is of particular relevance since most of the risks it highlights such as currency and interest rate risks, risks of commercial viability of the project including price risk and sales risk, along with project deadline overdue risks and cost overruns are beginning to plague investment projects implemented by many borrowers.
In addition, the paper contains a thorough analysis of all the identified risk categories and describes state-of-theart methods and tools to mitigate the above risks. The author emphasizes the role of a qualified and experienced project team, licensed appraisers and external consultants, risk monitoring, and an adequately set-up contractual base as core elements of effective project risk management.
About the Author
A. M. Harmath
the Financial University under the Government of the Russian Federation
Russian Federation
PhD student the Banks and Bank Management Chair
Russian Federation
PhD student the Banks and Bank Management Chair
References
1. Nikonova I.A. Proektnyi analiz i proektnoe finansirovanie [Project Analysis and Project Finance]. M.: Al’pina Pablisher — Alpina Publisher, 2012, 23 p. M., 2012, 23 p. (In Russ.)
2. Ibid. p. 25.
3. Yescombe E.R. Principles of Project Finance. Academic Press, 2002, 157 p.
Review
For citations:
Harmath A.M. MODERN METHODS AND TOOLS FOR REGULATION OF PROJECT FINANCE RISKS. Finance: Theory and Practice. 2014;(5):137-143. (In Russ.)
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