The Heavy Lift & Project Forwarding International Magazine is published in every other month providing news source for professionals in international heavy lift movements and project cargo activities. The July/August 2009 issue features an article by Milena Stoyanova, Head of Financial Services at SGS, titled: The web of risk.
When talking about project financing five different sorts of risks can be identified: financial and legal; market and political; technical and operational; environmental and social risks and risk of unforeseen events or natural disasters. The article highlights that every project can be jeopardized by one or more of these risks during its life cycle.
While some of these risks, like the market and political risks or the risks of natural disasters are hard or even impossible to control, technical and operational risks as well as social and environmental risks are more manageable, by applying the adequate preventive instruments.
However, a project success depends on how and when the project risks are addressed. In some cases it is quite possible that what starts as an operational risk ends in an environmental disaster. This is why each risk can not be considered without the other.
In addition to this, the article provided a quick overview of the Equator Principles, which is a framework launched in 2003 for evaluating social and environmental risk. With the help of it, financial institutions have the ability to carry out effective project finance risk management and protect them from the environmental and social liabilities.
Read the whole article. (PDF 1.42 MB)
SGS Project Finance Services understands the investors sensitiveness for project delays and proper project executions. We are convinced that the most effective way to manage project risk is prevention. We support our customers with technical and environmental due diligence as well as with project monitoring, delivering the trusted technical information needed to manage risk. Our expertise in project financing is based on years of experience in risk management solutions for customers all over the world.
Head of Financial Services
1 Place des Alpes
t: +41 22 739 9111
f: +41 22 739 9848
The SGS Group is the global leader and innovator in inspection, verification, testing and certification services. Founded in 1878, SGS is recognized as the global benchmark in quality and integrity. With more than 56,000 employees, SGS operates a network of over 1,000 offices and laboratories around the world.