Study Results from Peter the Great St. Petersburg Polytechnic University Broaden Understanding of Risk Management (Methodology for Economic Analysis of Highly Uncertain Innovative Projects of Improbability Type): Insurance – Risk Management

2023 FEB 07 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on risk management. According to news reporting out of Peter the Great St. Petersburg Polytechnic University by NewsRx editors, research stated, “Modern conditions for real investment are generally associated with increasing uncertainty, which is even more relevant when evaluating innovative projects.”

Funders for this research include The Ministry of Science And Higher Education of The Russian Federation.

Our news journalists obtained a quote from the research from Peter the Great St. Petersburg Polytechnic University: “Current innovation analysis methods using a linear model are outdated. At the same time, an open interactive model of the innovation process, formed due to digitalization, allows to connect to innovations at almost any stage of their life cycle. The aim of the study is to form a methodology for the economic analysis of innovative projects implemented in the context of an open innovation model. To achieve the goal, the study defines approaches to innovation projects differentiation. The approach to the analysis methods selection is based on the decision matrix. The developed decision matrix allows to determine the location of each project as its element and to select analysis methods, considering the project’s uncertainty characteristics.”

According to the news reporters, the research concluded: “The logic of the analysis methods transformation under the influence of a changing uncertainty level determines the combination of the fuzzy-set approach and the concept of real options. The implementation of the project analysis algorithm leads to the choice of an appropriate method for evaluating effectiveness and ensures that the flexible risk response concept under conditions of improbable uncertainty is taken into account when implementing the option model.”

For more information on this research see: Methodology for Economic Analysis of Highly Uncertain Innovative Projects of Improbability Type. Risks, 2022,11(3):3. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks11010003.

Our news editors report that additional information may be obtained by contacting Aleksandr Babkin, Higher School of Economics and Engineering, Institute of Industrial Management, Economics and Trade, Peter the Great St. Petersburg Polytechnic University, Saint Petersburg 195251, Russia. Additional authors for this research include Nadezhda Kvasha, Daniil Demidenko, Ekaterina Malevskaia-Malevich, Evgeny Voroshin.

(Our reports deliver fact-based news of research and discoveries from around the world.)