Managing Capital Projects For A High Risk World

1311 Words6 Pages
The article I chose is from The title of my article is Managing Capital Projects in a High-Risk World. In summary, the article discusses the importance of capital project risk management when it comes to organizations. When it comes to capital projects, there are many things that need to be addressed. A few of them are cost, financing, and difficulties of partnerships with contractors or joint venture participants. Regulations related to health, safety and environmental matters must also be addressed. Effective risk management can really help corporations make good decisions about whether or not a capital project is really worth its outcome. The first element of risk management is strong governance structure. Regardless of the size of the project or investment, it enables one to accurately compare and contrast the risks associated with the capital project. Also, once you know the risks associated with the project, you know exactly what you need to tackle. Therefore, you can then go on and figure out how you can go about doing so. Sometimes however, simply creating and following a clear and standardized process for risk modeling is not enough. Also, because of the complexity of high financing costs associated with the project, project management should be easy, concise, straight to the point and easy to understand. Companies have been found to improve management and create a successful capital project with the help of proper risk management. One can create as many
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