Project Risk from the Lender’s Viewpoint

Description:

People who manage projects consider a number of factors in the development of a project execution strategy. These include such technical parameters as the project size and cost, whether the unit is new or revamped, the integration with the existing refinery, overall schedule, and the need to coordinate shutdowns and tie-ins with current refinery operating plans. Rarely, however, do project managers ever consider financing as a factor that should influence the project execution plan. Why should project managers or engineering specialists care about finance? After all, corporate finance has historically been a world of accountants, business majors, and an occasional engineering graduate who “went astray." In some cases, this viewpoint is absolutely correct. In other cases, however, project managers should understand risk from a lender’s viewpoint for one simple reason— to get the money.