Skip to main content
Conference Proceedings

PACRIM 2004

Conference Proceedings

PACRIM 2004

PDF Add to cart

Project Management for All Seasons - Financial Risk Mitigation in a Challenging World

Mining project developers are committed to taking on all the challenges and obligations of financial risk management. It is interesting that our current models of project finance have not changed markedly in principle for some 700 years, yet the rules which prepare the way for effective project assessment and subsequent loan management still do not seem to be well understood by project or corporate developers._x000D_
Probability and gravity fill the opposing trays of the golden balance of financial risk. Understanding the relationship between these opposing, but intimately related elements is critically important for successful risk management. It is important to move beyond the qualitative approach and use quantitative methodologies to measure the financial impact of the occurrence of each major risk. We live in a world where the only constant is change and thus it is not surprising that a banker's life is still governed by assessing, measuring and pricing risk._x000D_
Banks are attracted to funding well managed companies with strong cash flow projects. But we are more risk averse compared with the credit appetites of late last century. This attitudinal shift has resulted in tougher term sheets for the early 21st century, encompassing more conditions, warranties, undertakings and stronger cash sweep provisions. Banks require well balanced portfolios to achieve an acceptable spread of risk, thus there is a more restricted market for small company lending than that available to large multi-project corporate entities with less concentrated risk profiles. Because of this focus, junior company debt finance remains comparatively expensive and especially so for more challenging geographical and political environments.
Return to parent product
  • Project Management for All Seasons - Financial Risk Mitigation in a Challenging World
    PDF
    This product is exclusive to Digital library subscription
  • Project Management for All Seasons - Financial Risk Mitigation in a Challenging World
    PDF
    Normal price $22.00
    Member price from $0.00
    Add to cart

    Fees above are GST inclusive

PD Hours
Approved activity
  • Published: 2004
  • PDF Size: 0.149 Mb.
  • Unique ID: P200405001

Our site uses cookies

We use these to improve your browser experience. By continuing to use the website you agree to the use of cookies.