Indian Journal of Science and Technology

Abstract

Objectives: This article develops a methodological approach to assessing performance of the organization investment projects with an allowance for an integrated risk factor. Methods: The integrated value of risks was determined by multivariate statistical analysis. The taxonomic analysis method was used as a variation of the multivariate statistical analysis. To determine the optimal portfolio of the organization’s investment, the projects were diversified by the degree of profitability and level of risk. The differentiation was carried out using Kohonen neural networks by allocating clusters of input vectors, having common properties. Findings: Quantitative characteristics of investment project risk factors specified by the conditions of uncertainty of its implementation have been determined within the scope of research. An integrated index of risk factors of the organization investment project has been calculated by taxonomic analysis. This index takes into account multidimensionality of impact exerted by the destructive factors on implementation of the organization project. Discriminant functions have been developed which allow classifying economic feasibility of the investment project with regard to comparison of rate of return and integrated level of the investment project risk. The proposed methodological approach is a versatile tool of project performance diagnostics enabling to consider the diversity of risk factors of its implementation. It is not limited by the terms and variability of investment projects. Application/Improvements: This approach allows optimizing the process of project portfolio formation. 
Keywords: Financial Rate of Investment Project Return, Integrated Risk Factor, Organization Investment Project, Performance Assessment