Project Risk, Finance, and Monitoring: Accenture Case Study Report

This report examines project risk, finance, and monitoring, with a focus on project selection, cost management, and funding options within a business context. The report begins by exploring tools and practices for project selection, such as cost-benefit analysis and economic models, using Accenture as a case study. It then defines the role and importance of a cost manager, outlining strategies for managing project costs, and evaluates various sources of funding, including loans, retained profits, and issuing shares. The report also details the processes involved in starting and ending a project, emphasizing the importance of planning, execution, monitoring, and review. Finally, it concludes with recommendations for risk management, emphasizing the need for a proactive approach to identify and mitigate potential risks throughout the project lifecycle. The report highlights the significance of effective resource management, infrastructure, and environmental considerations for successful project implementation.

Project risk, finance, and
monitoring: Part A

Table of Contents
EXECUTIVE SUMMARY..................................................................................................................3
INTRODUCTION................................................................................................................................4
MAIN BODY.......................................................................................................................................4
PART A.................................................................................................................................................4
1. Tools and practices required for selecting a project along with example....................................4
2. Defining role and importance of cost manager along with strategies for managing project
costs. ...............................................................................................................................................5
Recommendation about cost management strategies......................................................................5
3. Evaluating sources of funding for projects along with benefits..................................................5
4. Outlining processes related to starting and ending of project. 200..............................................6
CONCLUSION ...................................................................................................................................6
REFERENCES.....................................................................................................................................8

EXECUTIVE SUMMARY
Risk is associated with every business processes which has to be managed in an effective manner.
For staring any new business project, it is very important to gather full information about available
business resources, capital and processes. Financial and risk management of business project should
be done properly for seeking maximum benefits out of it. The present report is based on project
selection, management of cost and fund options which are available for the company for starting a
new business project.

INTRODUCTION
Project Selection is defined as a process of assessing and evaluating project idea, concept with the
best available business resources. Selection of the project should be done as per highest priority &
need of company. The report is based on Accenture Plc which is one of the multinational
professional company engaged in the business of providing services related to strategy, consulting,
digital technology. The company is having a net revenue of $39.6 billion rendering its services in
more than 120 countries. The report will discuss about effective management of cost and ensure
proper availability of funds. It will disclose different funding options available for firm along with
its implication aspects. At last the report will define process related to starting and ending of project
in relation with issues such as resource, infrastructure and environmental aspects.
MAIN BODY
PART A
1. Tools and practices required for selecting a project along with example.
For selecting a project, it is very much important to choose the most viable one among the available
options which is in line with the goals and objectives of the business. There are various tools and
techniques with the help of which, Accenture can evaluate viability of the project:
1. Cost benefit analysis – With the help of this tool, Accenture can easily assess the cost
associated which project's investment in comparison with the return to be achieved in near
future on its completion. This method defines the potential return value of project. For
example - project with $280,000 invested in resources will yield expected return of
$420,000 and have 4:6 as cost benefit ratio, which states that for every $4 invested, it will
give $6 return.
2. Economic model & Opportunity cost – This method is also known as Economic Value
Added which depicts the overall profit to be earned from the project in comparison with cost
amount invested (Meredith, Mantel Jr and Shafer, 2017). Opportunity cost defines the loss
on not selecting the another option.
3. Payback period – It defines the time period in which the amount invested by Accenture will
be earned back by the company. This helps the company in determining time in which
company will recover its initial investment amount in the form of profit. For example -
$280,000 invested will give a return of $20,000 in a year, payback will be of 14 years.

2. Defining role and importance of cost manager along with strategies for managing project costs.
Recommendation about cost management strategies.
Cost manager assist the company in formulation of budget or financial plans related to the
cost effective performance of business operations and maximization of profit levels. The cost
manager of company plays following role:
1. Ensures all the business operations and activities are conducted with the available budgeted
resources effectively.
2. Emphasizes on maximizing business value, profit along with minimum liabilities & full
control over cost (Cooper, 2017).
3. Helps Accenture in maintaining the requisite quality & safety standard.
With the help of cost manager, a company can improves its operational efficiency. It is very
important to have a cost manager in the company because of following reasons:
1. It helps in controlling cost expenses associated with unproductive business operations.
2. It assists company by making proper and accurate cost allocation.
3. It defines the cost budget for making a rough estimates about the future business expenses
and manner to minimize it.
Cost management strategies helps Accenture in controlling cost expenses, building of high
profit margins, value along with production of quality products. By monitoring all costs timely it
helps in ensuring, they are in line with the budget (Henri, Boiral and Roy, 2016). Strategy can be
like this - Separate all costs into different parts for determining high cost consuming business
operation and identify unnecessary cost. Building of Zero Base Budget can provide detailed
analysis and deep insight about costs.
3. Evaluating sources of funding for projects along with benefits.
For undertaking any new project or business task, proper funding is very necessary. With the
help of available business as well as human resources, a company can perform far better and makes
more profit. Different sources of funding options available for Accenture to start new projects are as
follows:
1. Loans – It is considered as one of the best source of funding for starting a new project. Bank
loan are safe and provide option of making pre repayment maturity also. Bank loan can
carry either fixed or variable interest rate option and can be taken as per the requirement.
Loans can be taken for short term period in form of overdraft facility or a short term loan of
a time period of 3 years. Benefit from taking bank loan is that it provides an option of
paying fixed instalment amount every month and payment of loan before completion of loan

tenure (Otero, 2015).
2. Retained profits – Accenture can make use of its profits for starting a new business project.
Retained earnings are the amount of profit which has been retained by the company for
future business expansion or for meeting any future uncertainty. Company can plough back
its profit amount into business operations for more growth.
3. Issuing shares – By coming up with issuing of new shares or right issue, Accenture can
arrange funds for its business project. This will help the company in increasing its
shareholder base and improves its capital structure too (Forrest, 2016).
4. Outlining processes related to starting and ending of project. 200
For starting a project, proper management process has to be followed starting from planning
to controlling of business resources. With starting of the project, following management has to be
done:
1. Defining goals and objectives of the new project to be achieved. Clear and effective
communication about the new business project, its goals and objectives should be done with
team members. Also, necessary plans and team efforts for attaining these goals should be
defined.
2. Planning and designing of the project. Developing new ideas and concepts for making
business more compatible, it is very important to make proper plans, strategies and actions.
3. After making plans keeping in mind all the business requirements, allocation of business as
well as human resources should be done in effective manner. Project should be executed
with available business and human resources.
4. Monitoring and reviewing of business project helps in determining any changes to be made.
Also, it will assist Accenture in controlling cost associated with business operations and
activities (Baek, 2017). It also helps in determining any duplication of business operations is
there or not.
5. On the basis of review and evaluation including feedback or observation should be done for
making modification or changes in the plan related to minimizing cost expenses, proper
allocation of business resources should be done so as to improve the performance of project.
CONCLUSION
From the above report it can be concluded that effective management of business as well as
human resources can help the company in successful accomplishment of its business goals and

objectives. The report has discussed about different tools available with Accenture for selection of
best and viable project option. It has also defined that with the help of cost manager, a company can
increase its operational efficiency as well as can maximize the overall profit margins and business
value. Also, cost manager assist company in controlling cost expenses associated with unproductive
business operations. With use of funding sources, project can be started. At last report has disclosed
that with proper planning and monitoring feature, the performance of project can become fruitful.
Issues to be faced at the time of implementation of new business projects are related with:
1. Resources – Scarcity of business resources can lead to conflict in the management. It is very
important on behalf of company to make procurement of the best resources and its effective
allocation should be done for the betterment of company business.
2. Infrastructure – Due to lack of techniques, business processes and technologies, company
has to face problem in implementation of its new project. Properly designed infrastructure
facility can boost up the culture of business operations.
3. Environment – Every customer now emphasizes on environment friendly products and
services, against which company has to mould itself. Project should be made by keeping in
mind feature of sustainable development.
RECOMMENDATION
Every project is associated with some business risk which has to be identified with time and
measures should be taken for mitigating it. For assessing the risk factor, risk management process
should be adopted by Accenture Plc. With the help of this management process, risk can be
identified timely and actions can be taken for minimizing its effect on the business operations. The
process of risk management consist of several steps which starts with risk management planning. It
helps company in framing of effective plans and strategies for minimizing the effect of adverse risk
effects. On assessing the risk, with the help of related tool risk should be analysed and identified.
Continuous monitoring and reviewing can help Accenture in ensuring risk plan designed has been
executed properly. Also, it helps in determining whether the effectiveness of plan made for reducing
risk. Before implementing any business project, it is very important to ensure availability of
business resources, funds and business goals for which project is made.

REFERENCES
Books and Journals
Baek, T. Y., 2017. Process Planning for Finishing Works of High-rise Residential Buildings
Project. Journal of the Korea Academia-Industrial cooperation Society. 18(11). pp.110-117.
Cooper, R., 2017. Supply chain development for the lean enterprise: interorganizational cost
management. Routledge.
Forrest, J., Mastercard International Inc, 2016. Method and System for Delivering Funding Options
to a User. U.S. Patent Application 14/823,759.
Henri, J. F., Boiral, O. and Roy, M. J., 2016. Strategic cost management and performance: The case
of environmental costs. The British Accounting Review. 48(2). pp.269-282.
Kendrick, T., 2015. Identifying and managing project risk: essential tools for failure-proofing your
project. Amacom.
Meredith, J. R., Mantel Jr, S. J. and Shafer, S. M., 2017. Project management: a managerial
approach. John Wiley & Sons.
Otero, P., 2015. Crowdfunding. A new option for funding health projects. Arch Argent Pediatr.
113(2). pp.154-157.
Online
Project selection methods. 2016. [Online]. Available through:
<https://www.4pmti.com/blog/project-selection-methods/>.