Risk management consideration in the bioeconomyAuthor(s): Camilla Abbati de Assis; Ronalds Gonzalez; Stephen Kelley; Hasan Jameel; Ted Bilek; Jesse Daystar; Robert Handfield; Jay Golden; Jeff Prestemon; Damien Singh
Source: Biofuels, Bioproducts and Biorefining. 11(3): 549-566.
Publication Series: Scientific Journal (JRNL)
Station: Forest Products Laboratory
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In investing in a new venture, companies aim to increase their competitiveness and generate value in scenarios where volatile markets, geopolitical instabilities, and disruptive technologies create uncertainty and risk. The biobased industry poses additional challenges as it competes in a mature, highly efficient market, dominated by petroleum-based companies, and faces signifi cant feedstock availability and variability constraints, limited technological data, and uncertain market conditions for newly developed products. Thus, decision-making strategies and processes for these investment projects must consider solid risk estimation and mitigation measures. Focusing on the biobased industrial sector, this paper critically reviews state-of-the-art probabilistic and deterministic methodologies for assessing fi nancial risk; discusses how a complete risk analysis should be performed; and addresses risk management, listing major risks and possible mitigation strategies.
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Citationde Assis, Camilla Abbati; Gonzalez, Ronalds; Kelley, Stephen; Jameel, Hasan; Bilek, Ted; Daystar, Jesse; Handfield, Robert; Golden, Jay; Prestemon, Jeff; Singh, Damien. 2017. Risk management consideration in the bioeconomy. Biofuels, Bioproducts and Biorefining. 11(3): 549-566.
Keywordsinvestment assessment, project evaluation, uncertainty analysis, financial risk analysis, probability analysis, biomaterials, bioeconomy
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