Budget Financing of Investment Projects at The High-Technology Industry Enterprises: Project Implementation Technology and Risk Mitigation
E. Nikulina1, E. Tarasova2
1E. Nikulina, Moscow Aviation Institute (National Research University), Moscow, Russia.
2E. Tarasova, Moscow Aviation Institute (National Research University), Moscow, Russia.
Manuscript received on 10 March 2019 | Revised Manuscript received on 18 March 2019 | Manuscript published on 30 July 2019 | PP: 5932-5935 | Volume-8 Issue-2, July 2019 | Retrieval Number: B3574078219/19©BEIESP | DOI: 10.35940/ijrte.B3574.078219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: As a rule, large-scale investment projects in high-tech industries are implemented with the participation of the state. The procedure and terms of coordination of the budget financing volumes and forms take a considerable amount of time (sometimes up to two years), and its results, when approved, are not subject to review. During this time, the baseline data on the project undergo changes leading to an increase in its value, thereby increasing the risks of successful project implementation. Thus, the company needs to secure additional financing at its own expense in order to eliminate negative consequences by increasing the project value. This situation can be resolved by using a redundancy mechanism that allows an enterprise to gradually accumulate funds to cover the increasing project costs. The availability of the reserve fund increases the sustainability of the project in terms of the dynamic external environment and leads to the mitigation of risks in its implementation.
Index Terms: Budget Financing, Investment Project, Reservation of Funds, Risk Management.
Scope of the Article: Simulation Optimization and Risk Management