Conference paper
INVESTMENT PLANNING AS A CONTRIBUTOR TO RISK MANAGEMENT
Ivo Šperanda
orcid.org/0000-0001-5808-4786
; Department of Economics and Business Economics, University of Dubrovnik, Dubrovnik
Tomislav Kandžija
; Primorje – Gorski kotar County, Rijeka
Abstract
In order for Risk Management to meet the requirements it has been given, it is joined by Controlling, that has become its fundamental service tool. Controlling has developed numerous tools that are being updated and improved on an everyday basis, together with the education of controllers. Development is inevitable and it is the only response to the crisis of our global environment. Development requires investments, and not the „stranded“ ones, but the ones generating new jobs and added value, thus increasing wealth. Investments should be planned, and planning is a particular problem that transition economies face. Should one be investing in the times of crisis and how should one decide on whether to make an investment or not? If this is so, then how should he protect his investment from negative impacts? How should one make plans and carry out the planned investments? Those are the questions that require answers and this paper is an attempt in providing apropriate answers to those questions by explaining the connection between investment planning and risk management. The condition of crisis has become a regular occurrence, where businessmen are forced to make do and to work in order to survive, and some of them are impelled to make the most of it and utilize it as a development opportunity. Being fast not only in making decisions, but in making successful decisions, is based on future projections and utilization of the said ability in achieving competitive advantage on the market. Risk Management has become a necessity, and is legally regulated in developed countries.
Keywords
investment decision-makin,; investment planning, development, risk management, controlling
Hrčak ID:
161443
URI
Publication date:
27.9.2013.
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