EPISODE 4: Options? Yes, Please! – The Value of Creating Options
In episode 4 of our 6 part series, Kosatka is able to identify a way to manage the uncertainties of the West Gamma project by agreeing on an option to not develop the second phase of the project if the first phase fell below certain performance expectations. The ability to create this option to manage the project risks allows Kosatka to reallocate its resources and grow overall value nearly as much as it would grow by increasing its capital spend. We saw that while Kosatka did not get all the value it hoped with a complete exit, it still generated considerable value, maintained the option to stay in the project, and preserve an important relationship.
Watch this webinar to learn how you can uncover hidden sources of value through the enhancement and development of options in your portfolio. In these uncertain times, it is critical that companies develop options that allow them to harness upsides and decline downsides to manage risk. We will discuss how you can use portfolio techniques to identify, enhance and develop your portfolio options to help your organization manage risk.
Topics covered will include: -
- Identifying options in your portfolio
- Evaluating the value of modifying existing options
- Crafting new options and assessing their value
- Comparing the benefits and cost of modifying and creating new options