PLANNING OF INVESTMENT PROJECTS AND TECHNICAL DEVELOPMENT MANAGEMENT OF THESE PROJECTS WITH INTEGRATED RISK-MANAGEMENT IN UNPREDICTABILITY IN STEEL COMPANIES IN THE CZECH REPUBLIC

Abstract

Current business conditions are characterized by rapid changes in the global business environment. Businesses are exposed to crises with hardly predictable development, the changing conditions in financial markets, fluctuations in economic growth and demand. Strong competition and pressure on product prices force companies to increase efficiency, innovate products, manufacturing processes and equipment, transfer production capacities. This is reflected in the management of industrial enterprises and their investment and technical development projects, including metallurgical production. The paper deals with the method of planning and management of investment and technical development projects in industrial enterprises under increased risk and uncertainty. In such conditions it is appropriate to use methods of project management with an integrated risk management. In the project planning phase especially uncertainty in metallurgical products market, prices of raw materials, availability and cost of corporate financing and exchange rate fluctuations should be included in decision making. It is necessary to evaluate the economic stability of customers and suppliers and potential threats from competitors. The project execution speed as well as meeting its goals is an important success factor. It is often necessary to analyze several key scenarios of possible development of business environment and our planned project. Besides the negative risk, i.e. threats, it is also useful to search for positive side of uncertainty and risk, i.e. opportunities. The project execution plan should be divided into phases and stages with checkpoints. Identified risks should be continuously monitored and controlled. Principles and practices described in the paper significantly contribute to increasing project success and efficiency.