Corporate asset management: An integrated model for investment portfolio assessment

Assessing the value of investments can be considered a multidimensional problem and a continuous process wherein the decision-maker is confronted with multiple needs, requirements and values. Thus, all investments and investment portfolios should be evaluated, selected and prioritised not only in terms of money, but also with regard to dependability, sustainability and other aspects to be able to form the optimal investment portfolio. This paper proposes a life-cycle cost-oriented portfolio analysis model that will better serve investment decision-making in the capital-intensive industry. The conceptual model includes economic assessment, risk assessment, as well as strategic and technical analyses. From a long-term perspective, applying a more integrated approach to investment portfolio assessments generates several benefits, including advancing companies’ and stakeholders’ abilities to manage investments and to support the goal of sustainable business growth.