Towards risk-conscious investment decision-making and value creation

Minna Räikkönen, Josu Takala, Rayko Toshev, Tero Välisalo, Teuvo Uusitalo, Susanna Kunttu, Sara Tilabi, Hosein Daneshpour, Shah Rukh Shakeel, Patrick Zucchetti, Anne-Mari Vatunen

Research output: Book/ReportReportProfessional

Abstract

Investments are vital to a company's future and must be carefully planned to deliver both immediate and long-term benefits. Hence, a company's ability to communicate the impact and risks of an investment to local society, people, investors and other stakeholders can provide a competitive advantage. The keys to future success are investments where value is not only expressed in terms of money, but also in terms of sustainability, reliability, safety, quality, social acceptability and other typically intangible criteria. The wider value perspective has rarely been included in such assessments up to now. This is mainly because these value elements are typically difficult to measure solely in economic terms, and there is thus a lack of models and approaches by which to address the importance of such indirect and intangible impacts. In addition, there is often pressure to demonstrate short-term effects rather than to emphasize the investment's entire life cycle. The purpose of this workbook is to support companies in their aim to make successful and risk-conscious investment decisions and to incorporate the wider value perspective into their investment decision-making. From this perspective, it will enhance companies' abiilities to plan investment process, to assess investments and to support the related decision-making in a systematic manner. The procedures described are not tied to any specific firm or branch of industry. However, the subject matter concerns, in the first place, companies that aim to generate social and environmental impact alongside financial return to investments. The workbook is aimed at all managers and staff involved in investment planning and decision-making, strategy and business development. The workbook is based on the results of MittaMerkki, a Tekes research project funded by the New Value Creation call. The project was carried out between 2015 and 2016 in close cooperation between the VTT Technical Research Centre of Finland Ltd and the University of Vaasa, as well as four companies from various sectors of industry and service business in Finland: TVT Asunnot Ltd, Jyväskylän Energia Ltd, TEAK Ltd and Humming World Ltd.
Original languageEnglish
PublisherVTT Technical Research Centre of Finland
Number of pages78
ISBN (Electronic)978-951-38-8492-5
Publication statusPublished - 2017
MoE publication typeNot Eligible

Publication series

NameVTT Technology
PublisherVTT
No.282
ISSN (Print)2242-1211
ISSN (Electronic)2242-122X

Fingerprint

Investment decision-making
Value creation
Industry
Intangibles
Decision making
Finland
Investment decision
Investors
Environmental impact
Business development
Service business
Stakeholders
Managers
Investment planning
Life cycle
Research center
Strategy development
Economics
Acceptability
Sustainability

Keywords

  • investment
  • risk
  • investment planning and decision-making
  • economic impact
  • social impact
  • investment assessment
  • risk assessment

Cite this

Räikkönen, M., Takala, J., Toshev, R., Välisalo, T., Uusitalo, T., Kunttu, S., ... Vatunen, A-M. (2017). Towards risk-conscious investment decision-making and value creation. VTT Technical Research Centre of Finland. VTT Technology, No. 282
Räikkönen, Minna ; Takala, Josu ; Toshev, Rayko ; Välisalo, Tero ; Uusitalo, Teuvo ; Kunttu, Susanna ; Tilabi, Sara ; Daneshpour, Hosein ; Shakeel, Shah Rukh ; Zucchetti, Patrick ; Vatunen, Anne-Mari. / Towards risk-conscious investment decision-making and value creation. VTT Technical Research Centre of Finland, 2017. 78 p. (VTT Technology; No. 282).
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Räikkönen, M, Takala, J, Toshev, R, Välisalo, T, Uusitalo, T, Kunttu, S, Tilabi, S, Daneshpour, H, Shakeel, SR, Zucchetti, P & Vatunen, A-M 2017, Towards risk-conscious investment decision-making and value creation. VTT Technology, no. 282, VTT Technical Research Centre of Finland.

Towards risk-conscious investment decision-making and value creation. / Räikkönen, Minna; Takala, Josu; Toshev, Rayko; Välisalo, Tero; Uusitalo, Teuvo; Kunttu, Susanna; Tilabi, Sara; Daneshpour, Hosein; Shakeel, Shah Rukh; Zucchetti, Patrick; Vatunen, Anne-Mari.

VTT Technical Research Centre of Finland, 2017. 78 p. (VTT Technology; No. 282).

Research output: Book/ReportReportProfessional

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AU - Takala, Josu

AU - Toshev, Rayko

AU - Välisalo, Tero

AU - Uusitalo, Teuvo

AU - Kunttu, Susanna

AU - Tilabi, Sara

AU - Daneshpour, Hosein

AU - Shakeel, Shah Rukh

AU - Zucchetti, Patrick

AU - Vatunen, Anne-Mari

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Räikkönen M, Takala J, Toshev R, Välisalo T, Uusitalo T, Kunttu S et al. Towards risk-conscious investment decision-making and value creation. VTT Technical Research Centre of Finland, 2017. 78 p. (VTT Technology; No. 282).