Risk management design of investment projects at power generation enterprises

Abstract

Electric power industry as a leading energy sector of Ukraine needs constant renewal and development. Therefore, realization of investment projects aimed at the modernization and reconstruction and at the construction of new power generation enterprises is appropriate. Since the process of project implementation is accompanied by a number of risks, in this case, a question arises as to the necessity of designing risk management of investment projects. Resolving this issue has become the purpose of the study, for which theoretical and empirical methods of scientific knowledge have been used. Risk management is an effective tool by which risks are minimized and the planned project objectives are achieved. As a result of the research, the scientific and methodical approach to the design of risk management of investment projects at power generation enterprises has been improved. The basis of the study is the project for construction of power units No. 3, 4 at Khmelnytska nuclear power plant. The design was based on the identification of project characteristics that form the background of the risks. The expediency of taking into consideration the type of contract for the further redistribution of risks between project participants has been determined. The necessity of risk management integration using the system, process and situational approaches has been revealed. The details of the business process "risk management" which is aimed at the integrity of the investment project management, and the support of both basic and providing processes have been described. Thus, the integration of risk management through systematic, process and situational approaches provided an opportunity to shift the emphasis of risk management from the corrective function to the preventive one. The description and specification of the process of risk management formed the basis of the recommendations for management of investment projects at nuclear power plants.