Project management

It’s no secret to anyone that before starting financing an investment project, a potential investor performs a thorough analysis and evaluates each step of interaction with the initiator, in order to preserve equity. What does this process mean by itself?
– The need to analyze the assets of future investments, the level of existing and potential investment risks, to calculate the quantitative and qualitative indicators of investment resources needed to bring the idea to life, and also to assess the amount of positive effect that is planned to be achieved at the end of the investment.

An investment project is the organization of algorithms for the interaction of a large number of project participants among themselves, this is the construction of methods and methods for achieving the goals and objectives that the project faces, this is ensuring that the project is necessary for everyone to successfully implement it. It is quite obvious that such a multifaceted and complex process requires control and, most importantly, management!

Investment project management is an activity that involves planning, organizing, motivating, controlling and regulating the course of an investment project, aimed at obtaining the result of an investment task under conditions of time, budget, risk and quality limits.
Investment project management functions:
  • control over the technical and technological component of production;
  • control over the process of buying, selling and exchanging inventory items;
  • financial activities;
  • accounting (accounting, material, statistics, etc.);
  • insurance;
  • assessment;
  • administrative activities.
In order for the investment project management process to be successful, and investors and initiators get what they want, Alfa Resonance Capital Ltd adheres to the following management principles:
  • taking into account the interests of all parties involved in the project;
  • thorough analysis and control of the features of each of the stages of the project life cycle;
  • taking into account all possible types of risks at each individual stage of the project;
  • support for positive performance, analysis of performance and ways to achieve them;
  • attitude to the investment project, as a single complexly organized system, requiring a flexible, highly individual approach;
  • implementation of continuous financial modeling Cash Flow.
Methods of managing an investment project, first of all, reveal the essence of all management activities at the enterprise, and also determine a specific set of actions to achieve the objectives. Methods are also an incentive and motivating factor for all parties involved in the project. In other words – the more effective the method, the higher the final result of the activity. Thus, its effectiveness will largely depend on which management method will be chosen.
Currently, the following basic methods for managing investment projects have been identified:
  • the method of network planning (or the construction of understandable and interconnected algorithms for the implementation of the project and the provision of the received information in graphical form using mathematical and economic models, as well as computer technology);
  • the method of linear graphs (or the allocation of time intervals (stages), the types of work related to them and the persons responsible for their implementation).

The investment project management system is a balanced set of ways and methods of achieving goals and an organized management structure over them.

There are several basic approaches to investment project management:
  • functional (planning, analysis, control, regulation and stimulation, organization of all production and financial processes);
  • dynamic (correction of decisions made over all processes for the implementation of the project at the moment “here and now”);
  • subject (control – is carried out not over all current processes simultaneously, but separately over each).
The main forms of investment project management are:
  • project (creation of a team for the implementation of the project, headed by a leader responsible for its implementation on time and in full);
  • functional (using the current management structure at the enterprise without changes);
  • matrix (the project manager can use his subordinates at those times when he needs them).
The process of managing an investment project, depending on the stage of its implementation:

PRE-INVESTMENT STAGE                                                  
  1. the financial analysis;                                                            
  2. feasibility study of investments.

  1. financial management;
  2. construction management;
  3. financial and settlement operations management;
  4. organization of a monitoring system.

  1. fixed assets accounting;
  2. routine maintenance of the company.

The life cycle of an investment project goes through several phases of implementation. The effectiveness of each of the phases is very important in achieving the final result and it is extremely unique from the point of view of its characteristic risks. At the investment stage, there are the following types of risks:Risk management of investment projects is a process of making managerial decisions and actions aimed at reducing the likelihood of adverse events and effects that could negatively affect the results of investment activities. Risk management is also maintaining a balance between the possibility of obtaining the desired benefit and the risk of not realizing it.
  • failure to meet deadlines;
  • increasing the cost of the project;
  • unsatisfactory quality of work.
The operational phase has the following risks:
  • sales of products;
  • production (sufficiency of raw materials, energy resources, sufficiency of technological resources for production, etc.);
  • changes in the degree of solvency of the enterprise (change in the exchange rate, interest rates, taxation, etc.).
When a project is liquidated, they face the following risk group:
  • execution of civil liability;
  • refinancing of works.
So in risk management, it is necessary to take into account the groups of risks related to all phases of the implementation of investment projects:
  • political risks;
  • administrative;
  • legal;
  • management;
  • force majeure circumstances.
Having identified the main problems and difficulties that may hinder the implementation of the investment idea, an understanding arises of what methods can be used to control and manage them:
  • refusal to implement a project that carries risks;
  • the presence of an “airbag” capable of covering unforeseen damage;
  • use of insurance and hedging procedures;
  • risk sharing among all project participants.

Alfa Resonance Capital Ltd offers initiators of investment projects a full range of project management services with a view to their most effective, safe and successful implementation.