Risk as a mitigating factor for valuing long term project

Abstract

Risk is anything that threatens or limits the ability of a project to achieve its goal, objectives, or the production of project deliverables. Risk management is a process of analysing systematically about all possible undesirable outcomes before they happen and setting up procedures that will mitigate the risk. The basic tools which will act as supporting factor for
risk mitigating , like IRR, Modified IRR, Economic Value Added and CSR tools can be debated for understanding the concepts and techniques in a much broader perspectives. With the present trend heading towards Financial Information ystem, ERP ,Information System Audit, it is very much essential to understand the rudiments of risk analysis tools in the proper sense. In this context the risk analysis tools need to be examined in its entirety , context and validity and also the applicability of such tool for financial decisions. This subject is a matter of concern for the academicia and the industry, with particular reference to long term projects, like infrastructure.