The aim of the article is to present the issue of risk and related management methods, with a particular emphasis on the conditions of investment in energy infrastructure. The work consists of two main parts; the first one is the theoretical analysis of the issue, while the second discusses the application of analysis methods on the example of the investment in an agricultural biogas plant. The article presents the definitions related to the investment risk and its management, with a particular emphasis on the distinction between the risk and uncertainty. In addition, the main risk groups of the energy sector were subjected to an analysis. Then, the basic systematics and the division into particular risk groups were presented and the impact of the diversification of investments in the portfolio on the general level of risk was determined. The sources of uncertainty were discussed with particular attention to the categories of energy investments. The next part of the article presents risk mitigation methods that are part of the integrated risk management process and describes the basic methods supporting the quantification of the risk level and its effects – including the Monte Carlo (MC), Value at risk (VaR), and other methods. Finally, the paper presents the possible application of the methods presented in the theoretical part. The investment in agricultural biogas plant, due to the predictable operation accompanied by an extremely complicated and long-term investment process, was the subject of the analysis. An example of “large drawing analysis” was presented, followed by a Monte Carlo simulation and a VaR value determination. The presented study allows for determining the risk in the case of deviation of financial flows from the assumed values in particular periods and helps in determining the effects of such deviations. The conducted analysis indicates a low investment risk and suggests the ease of similar calculations for other investments.
The FMEA (Failure Mode and Effects Analysis) method consists in analysis of failure modes and evaluation of their effects based on determination of cause-effect relationships for formation of possible product or process defects. Identified irregularities which occur during the production process of piston castings for internal combustion engines were ordered according to their failure rates, and using Pareto-Lorenz analysis, their per cent and cumulated shares were determined. The assessments of risk of defects occurrence and their causes were carried out in ten-point scale of integers, while taking three following criteria into account: significance of effects of the defect occurrence (LPZ), defect occurrence probability (LPW) and detectability of the defect found (LPO). A product of these quantities constituted the risk score index connected with a failure occurrence (a so-called “priority number,” LPR). Based on the observations of the piston casting process and on the knowledge of production supervisors, a set of corrective actions was developed and the FMEA was carried out again. It was shown that the proposed improvements reduce the risk of occurrence of process failures significantly, translating into a decrease in defects and irregularities during the production of piston castings for internal combustion engines.