Risk Management In Development Project Using The Real Options Approach

This master's thesis is devoted to the development of methodological recommendations on risk management using real options in the implementation of the development project of business center in St. Petersburg. Today, during the crisis in the real estate market and the highest level of uncertainty to the construction companies the question of necessity to introduce a risk management system is very important. Risk management system in the implementation of development projects enhance the effectiveness of projects and reduce the likelihood of losses. Thus, the theme of this work is quite relevant and useful in practice. The aim of this work is development of methodological recommendations on risk management using real options in the implementation of the development project. The work consists of three chapters. The first chapter describes the theoretical basis of the risk management of development projects. The second chapter is dedicated to the real option in risk management of development projects. The third chapter is devoted to the adaptation of the risk management system using real options in practice. The scientific novelty of this work lies in the modified algorithm of risk management of development projects using real options. The practical significance of this study lies in the possibility of using the results in risk management of development projects, the algorithm of using real options in the system of risk management methodology for assessing the effectiveness of risk management based on real options. The analysis provides increment to knowledge about risk management of development projects on the part of the risk assessment with real options.