Business Portfolio Project Management

Question: Discuss about the case study Business Portfolio for Project Management. Answer: Learning outcomes of the course Description of experience Learnings from my experience Reference 1. Acknowledged that which form of finance is better for which sector. In this course I had learnt various factors to be considered before selecting any kind of finance for funding of project. According to my experience, I could say that public organisation seeks for public finance such equity and debt and on the other hand private sectors prefer loans having a low-interest rate. (Race 2010, p. 58) 2. Knowledge about resources from where funds can be availed for large projects. I was able to enhance my knowledge of Information about the formation of total finance. The finance consists of three parts: equity, working capital and loan. For any project; we can procure funds from these three areas if needed. (Finnerty 2013,Pp.25-30). 3. Information about variety of loans. Got aware with new terms as export credit and Bilateral Aid agencies Development Loans. A large scope is available for procuring funds. Hence if your base is strong you easily get the funds as in the case of export credits and commercial loans. These kinds of loans promote business at large scale. (Timmins 2008, p. 115). 4. Extent to which lender can claim. I was surprised with the fact which came to me that all lender does not have similar benefits and appropriate analysis is essential prior to selection. The lender cannot claim over the value of assets of the project on which loan was taken. (Paravisini, Rappoport and Ravina, 2016, P.12) 5. Risk associated with finance Various factors to be considered before taking a loan. If the loan is taken in other currency as in the case of foreign loans, in that case, risk regarding fluctuation in the value of the currency is associated with the loan. This risk can be controlled by Interest rate swap method. After considering the interest rate and value of the currency proper action should be taken. (Race 2010, p. 58) 6. Not all money is required at starting of project. I had learned that the project is bifurcated in different phases. A number of funds depend on the phase of the project. I analysed during my course that one cant judge at the time of starting a project about the funds which are to be required for the project. (Faccio, Marchica and Mura, 2016, Pp. 5-7) 7. Analysis before starting project The kind of circumstances which arises before projection. The objective of the project is concluded before obtaining statutory approvals. Designing and financing are finalised after taking permission regarding project from appropriate authorities. (Finnerty 2013, Pp.25-30). 8. Operating speed as a critical factor It plays a major role in any project The success and failure of any project depend on the speed on which it is operated. If after getting approval from appropriate authorities the project is not started within a reasonable period, then, in that case, the investors and financiers who have invested their funds in the project can lose their confidence and can claim their money back. (Faccio, Marchica and Mura, 2016, Pp. 5-7) 9. Enhanced with knowledge of key parameters of a project. The considerations which should be taken by lenders and objectives of the loan. According to the study, it can be said that loan term loan with fixed interest rate is proved beneficial than other loans. A major concern should be given towards situation due to which risk of refinancing arises. Before providing loan the size of project and breakeven dates should be properly considered by the lender. (Timmins 2008, p. 115). References Race, P., 2010. A Practical Guide to Assessment, Learning and Teaching. Abingdon, England: Routledge. Timmins, F., 2008. Making Sense of Portfolios: An Introduction to Portfolio use for Nursing Students. Glasgow, Scotland: McGraw-Hill Education. Paravisini, D., Rappoport, V. and Ravina, E., 2016. Risk aversion and wealth: Evidence from person-to-person lending portfolios. Management Science. P 12. Finnerty, J.D., 2013. Project financing: Asset-based financial engineering. John Wiley Sons. Pp. 25-30. Faccio, M., Marchica, M.T. and Mura, R., 2016. CEO gender, corporate risk-taking, and the efficiency of capital allocation. Journal of Corporate Finance. Pp. 5-7.