The globalization of business continues to expand, as many organizations find greater profit in offering services to customers that extend beyond the borders of the home office. However, with such expansion comes new risks to consider, based on any number of variables that may not synch up from country-to-country: political climate, variance in laws/regulations and, of course, currency.
WEnergy Global Pte. Ltd., which designs, procures and builds power plants, such as solar PV, biomass, small hydro power and wind, operates in low and medium-risk countries like Singapore, India and Sri Lanka. The company recently turned to Palisade’s @RISK to determine whether or not they should move forward 25-year project across a number of countries.
The determination of whether to move forward or to reject the project was based on two very clear variables over the 25 years of the proposed project: the variability in the price of power in each country and each geography’s exchange rate volatility. According to WEnergy Global’s CEO S.A. Ramsundersingh, @RISK clearly identified the probability of risks involved and made the decision-making process easier:
“@RISK simulation software has been very helpful in performing rigorous financial analysis of our projects. It has not only given us great perspectives on our projects’ analysis, but has also enabled us to introduce complexities in performing feasibility studies leading to important investment decisions. @RISK is a great tool for saving time, resources and energy in making critical management.”
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