Net Present Value And Risk Modelling For Projects

The Net Present Value (NPV) forecast lies at the heart of the business case on many projects. Martin Hopkinson's guide explains when, why and how NPV models should be built for projects and how this approach can be integrated with the risk management process. NPV models tend to be used during the earliest phases of a project as the business case is being developed. Typically, these are the stages when uncertainty is at its highest and when the opportunities to influence the project's plan are at their greatest. This book shows how project financial forecasting and risk management principles can be used to both improve NPV forecasts and to shape the project solution into one that is risk-robust. The text is sufficiently broad to be practicable for first-time users to employ the methods described. But it also contains insights into the process that are likely to be new to the majority of experienced practitioners. All users should find that the models used in this book will help to provide useful templates for exploiting the techniques that are used.

On many projects the Net Present Value (NPV) forecast lies at the heart of the business case. Martin Hopkinson's short guide explains when, why and how NPV models should be built for projects and how this approach can be integrated with the risk management process. This book shows how project financial forecasting and risk management principles can be used both to improve NPV forecasts and to shape the project solution into one that is risk-robust. The text is sufficiently broad to be practicable for first-time users to employ the methods described. But it also contains insights into the process that are likely to be new to the majority of experienced practitioners.

Top businesses recognise risk management as a core feature of their project management process and approach to the governance of projects. However, a mature risk management process is required in order to realise its benefits; one that takes into account the design and implementation of the process and the skills, experience and culture of the people who use it. To be mature in the way you manage risk you need an accepted framework to assess your risk management maturity, allowing you to benchmark against a recognised standard. A structured pathway for improvement is also needed, not just telling you where you are now, but describing the steps required to reach the next level. The Project Risk Maturity Model detailed here provides such an assessment framework and development pathway. It can be used to benchmark your project risk processes and support the introduction of effective in-house project risk management. Using this model, implementation and improvement of project risk management can be managed effectively to ensure that the expected benefits are achieved in a way that is appropriate to the needs of each organisation. Martin Hopkinson has developed The Project Risk Maturity Model into a robust framework, and this book allows you to access and apply his insights and experience. A key feature is a CD containing a working copy of the QinetiQ Project Risk Maturity Model (RMM). This will enable you to undertake maturity assessments for as many projects as you choose. The RMM has been proven over a period of 10 years, with at least 250 maturity assessments on projects and programmes with a total value exceeding £60 billion. A case study in the book demonstrates how it has been used to deliver significant and measurable benefits to the performance of major projects.

Managers of multinational organizations are struggling to win the strategic competition for the hearts and minds of external stakeholders. These stakeholders differ fundamentally in their worldview, their understanding of the market economy and their aspirations and fears for the future. Their collective opinions of managers and corporations will shape the competitive landscape of the global economy and have serious consequences for businesses that fail to meet their expectations. This important new book argues that the strategic management of relationships with external stakeholders – what the author calls "Corporate Diplomacy" – is not just canny PR, but creates real and lasting business value.Using a mix of colourful examples, practically relevant tools and considered perspectives, the book hones in on a fundamental challenge that managers of multinational corporations face as they strive to compete in the 21st century. As falling communication costs shrink, the distance between external stakeholders and shareholder value is increasingly created and protected through a strategic integration of the external stakeholder facing functions. These include government affairs, stakeholder relations, sustainability, enterprise risk management, community relations and corporate communications. Through such integration, the place where business, politics and society intersect need not be a source of nasty surprises or unexpected expenses. Most of the firms profiled in the book are now at the frontier of corporate diplomacy. But they didn’t start there. Many of them were motivated by past failings. They fell into conflicts with critical stakeholders – politicians, communities, NGO staffers, or activists – and they suffered. They experienced delays or disruptions to their operations, higher costs, angry customers, or thwarted attempts at expansion. Eventually, the managers of these companies developed smarter strategies for stakeholder engagement. They became corporate diplomats. The book draws on their experiences to take the reader to the forefront of stakeholder engagement and to highlight the six elements of corprate diplomacy.

Providing a system of risk analysis and whole-life costing on engineering projects, this manual explores the framework of judgement for risk management which aims to strike a balance between qualitative and quantitative analysis.

Contains Nearly 100 Pages of New MaterialThe recent financial crisis has shown that credit risk in particular and finance in general remain important fields for the application of mathematical concepts to real-life situations. While continuing to focus on common mathematical approaches to model credit portfolios, Introduction to Credit Risk Modelin

Aswath Damodaran, distinguished author, Professor of Finance, and David Margolis, Teaching Fellow at the NYU Stern School of Business, have delivered the newest edition of Applied Corporate Finance. This readable text provides the practical advice students and practitioners need rather than a sole concentration on debate theory, assumptions, or models. Like no other text of its kind, Applied Corporate Finance, 4th Edition applies corporate finance to real companies. It now contains six real-world core companies to study and follow. Business decisions are classified for students into three groups: investment, financing, and dividend decisions.