RISK AS A FACTOR IN DECISION MAKING IN FINANCING PROJECTS IN THE FIELD OF INFORMATION TECHNOLOGY

Abstract

The article provides an in-depth analysis of the complexity and implications of risk in the financial decision-making processes of IT projects. The author explores impact of various risk types on the outcomes and profitability of the projects. Emphasizing the importance of the Expected Monetary Value (EMV) method, the article scrutinizes popular investment efficiency metrics such as ROI (Return on Investment) and IRR (Internal Rate of Return), highlighting the criticality of integrating risk considerations into their assessments.

The discussion extends to the necessity for broader criteria in project selection, advocating for a more nuanced approach to distributing financial resources within IT project portfolios. This approach aims to enhance the overall economic effectiveness, especially considering the high-risk environment characteristic of the IT sector. The article argues for a more comprehensive framework that not only addresses the immediate financial aspects but also accounts for the broader, often unpredictable, risk factors that can influence the long-term success and viability of IT projects.

In delving into these aspects, the article offers valuable insights for project managers, investors, and stakeholders in the IT industry. It stresses the need for a balanced approach to risk management, one that navigates the fine line between risk aversion and opportunity maximization. By doing so, it underscores the importance of strategic planning and risk assessment as key components of successful IT project financing and management.

Overall, this publication serves as a crucial resource for understanding the dynamics of risk management in IT project financing. Its comprehensive analysis provides a framework for making informed decisions that account for both the potential rewards and the inherent risks associated with investing in the rapidly evolving and often unpredictable realm of information technology.