A BUSINESS INTELLIGENCE INSTRUMENT FOR DETECTION AND MITIGATION OF RISKS RELATED TO PROJECTS FINANCED FROM STRUCTURAL FUNDS

Ecoomic Computatio ad Ecoomic Cyberetics Studies ad Research, Issue 2/2016, Vol. 50 Marcel Ioa BOLOS, PhD Uiversity of Oradea Diaa Claudia SABĂU-POPA, PhD Professor Emil SCARLAT, PhD Ioaa-Alexadra BRADEA, PhD E-mail: alexbradea1304@yahoo.com Camelia DELCEA, PhD The Bucharest Academy of Ecoomic Studies A BUSINESS INTELLIGENCE INSTRUMENT FOR DETECTION AND MITIGATION OF RISKS RELATED TO PROJECTS FINANCED FROM STRUCTURAL FUNDS Abstract: The Structural Fuds, i order to produce the iteded effects, must use their specific maagemet tools, for achievig the strategic objectives, outcome idicators ad elemets of added value set by each EU member state. The project portfolios must be maaged properly. If risks of a project become cotagious for other projects, we are witessig a pheomeo that ca compromise the chace that a program fiaced by Structural Fuds to be well carried out. I this paper it is itroduced a algorithm to reduce the project implemetatio risk ad a IT iterface is desiged to serve as a cotrol system, for the permaet measuremet ad moitorig of the risk idicators, i order to facilitate decisio-makig ad predictio. Keywords: IT iterface, dashboard, portfolio risk maagemet, implemetatio risk, structural fuds. JEL Classificatio:C30, G17, O22. I. Itroductio: I recet years Busiess Itelligece techiques ad tools became more ad more attractive, beig used almost i all the large compaies i the world, for aalysis, measurig, moitorig, cotrol ad decisio. I order to achieve the strategic objectives, the maagemet should predict all the stable processes ad should cotrol all the ustable processes. I project maagemet, the structural fuds caot produce the iteded effects if are t used some specific AI tools, which determies the achievig of the strategic objectives, usig the structural fuds, outcome idicators ad elemets of added value set by each EU member state. The maifestatios forms of the risk are differet, from the risk of delay i preparig the documetatio that highlights the ecoomic sustaiability of the project, to the risk arisig from delays selectig the suppliers. All these risks have i commo the time required for completio of stages i the life cycle of a project. 165

Marcel Bolos, Diaa Sabau - Popa, Emil Scarlat, Ioaa Bradea, Camelia Delcea Whatever the delays, they will have a direct impact o the duratio of the project implemetatio, which is importat from the perspective of project budget, outcome idicators ad the achievemet of project objectives.[pirciog, Ciuca, Popescu, 2015] The cotrol Dashboard fuctios by the same laws as the Dashboard of a car or airplae, icludig tables, graphs, figures, GPS, idicators that reflect the desired destiatio ad route. So, the Dashboard reflects the evolutio ad tred of the key risk idicators ad key performace idicators, by moitorig their cotiuous measuremet. Dashboard coects the project with maagemet i real time, providig beefits due to the large umber of people who see the results every day, icreasig the quality of decisios. II. The Dashboard: A IT Iterface that moitors the projects The Dashboard ca be cosidered a maagemet iformatio system, a busiess itelligece tool that displays all of the required iformatio o a sigle scree, clearly, i order to be uderstood by every user. The Dashboard represets a IT iterface that trasforms data ito iformatio; is a cogitive tool which allows to: idetify treds, patters ad irregularities for decisios ad cotrol [Delcea C., Bradea I.A., Scarlat E. 2013]. A Dashboard gives the maagemet the isights: idicates everythig the CEO eeds to ru the show. The dashboards created with the curret software ca display: graphics, tred aalysis, forecasts ad dyamic drill-dow buttos. The processed data ca be retrieved from various sources, aalyzed from several perspectives ad distributed o the web ad o mobile devices. The mai advatage of this methodology is the simplicity of desig. Thus, all iformatio is preseted as simple ad cocise; avoidig uecessary graphics. The Dashboard idicates whe a actio is required ad directly provides ay additioal iformatio required to take that actio. For desigig ad implemetig a Dashboard some steps must be followed: focus o data, kow the users, tool selectio, use visual desig cocepts, develop the idicators, develop the levels of data ad threshold, create a prototype, display iformatio o a sigle scree, ask for feedback ad coduct traiigs. The Dashboard moitors the exposure to critical busiess risks by usig key risk idicators (KRIs), which alerts whe the accepted values of the threshold are passed. It offers a directio to follow ad iformatio regardig the risk evet. It is used as a alarm sigal for further actios. III. Projects fiaced from structural fuds The projects fiaced from structural fuds have become a very iterestig topic, with medium ad log term challeges, due to the fact that the risk idetificatio ad the subsequet implemetatio of strategies to reduce or eve disposal the risk, are major cocers of specialists ad orgaizatios that provide structural fuds maagemet. Furthermore, the structural fuds are today, for most Member States of the Europea Uio, a istrumet for: the implemetatio of 166

A Busiess Itelligece Istrumet for Detectio ad Mitigatio of Risks Related to Projects Fiaced from Structural Fuds sustaiable developmet policies to elimiate the regioal developmet disparities; promotig ivestmets; creatig jobs ad esurig a high stadard of livig for the EU citizes. Structural Fuds are attractive for ay Member State due to their particularities; they are ot refudable ad have o immediate fiacig cost, which makes the beeficiaries of fuds to lead a fierce battle betwee them to access these resources durig the calls projects orgaized by orgaizatios competet i the field. Compared to repayable fuds, i the bakig or capital market, the Structural Fuds protect the beeficiaries cash-flow durig the project implemetatio, but also after that, i the post-deploymet period, sice they ot geerate paymets to fiacial istitutios ad the impact o the projects sustaiability is straightforward. Ofte, projects that are ot sustaiable for fully fudig from the mix of ow ad borrowed sources, as they caot geerate sufficiet cash-flows to repay the fiacial liabilities to creditors, become sustaiable by usig structural fuds through cost savigs that are geerated by the lack of fiacig costs. The operatioal programs remai tools for macro maagemet, which seek to implemet strategic objectives of atioal ad Europea political strategy, while projects become specific tools for the operatioal program that esure the implemetatio of the objectives. Levels of objectives for the two istrumets are differet. The geeral rule is that ay operatioal program icludes a portfolio of projects, without the operatioal program caot achieve its purpose. [Davidescu, Paul Vass, Gogoea, Zaharia, 2015] Here comes the iterest of specialists i fiace ad iformatio techology, because these project portfolios must meet several prerequisites, amely: i) to be mature projects ready to be implemeted, ii) to be sustaiable projects or to esure ecoomic sustaiability o medium ad log term, iii) the project beeficiaries must have the admiistrative capacity to implemet them. IV. The project risk Ay project (P), regardless the fudig source, is characterized by a life cycle that ca arise from the idea stage ad ca be eded with the completio of implemetatio. Usually the life cycle of a project, importat i terms of structural fuds, differ accordig to type; the ifrastructure project has the life cycle betwee 3-5 years, while the small value projects, the o-ifrastructure projects have a lifecycle that ca reach up to 3 years. O the etire life cycle of a project, the forms of risk are differet, ad the iterest for early detectio becomes icreasigly more iterestig give that the risk of ay kid may embarrass the successful completio of the project implemetatio [Cagliao A.C., Grimaldi S., Rafele C. 2015]. So the budget of a project ca be distributed over differet periods of time, accordig to the schedule of cash-flows. I the absece of compliace with these cash-flows, caused by delays i implemetig the various stages of the life cycle of the project, the cosequeces ca be diverse. The most importat cosequece is 167

Marcel Bolos, Diaa Sabau - Popa, Emil Scarlat, Ioaa Bradea, Camelia Delcea the loss of budgets allocated to Member States through operatioal programs. That is why EU Member States, which provides structural fuds maagemet, will pay special attetio to risks arisig from delay i project implemetatio, which ca compromise the chace of developmet of the regios cocered to esure a high stadard of livig for citizes. I this cotext, the implemetatio risk of a project becomes essetial, havig direct cosequeces, ot oly o the budget allocated to EU Member States, but also o cash-flow deficits that ca lead to a project.[boloș M.I, Sabău-Popa D.C., Filip P., Maolescu A., 2015] V. Measuremet techiques for the risk of implemetatio I everyday laguage of specialists, this category of risk is kow as physical progress. Without goig ito techical details, it is importat to ote that from the beeficiary's perspective ad from the perspective of fiace ad iformatio techology specialists, the implemetatio risk represets the situatio i which the project durig the implemetatio stage is ot completed o time. A cotractual deadlie takes may forms: i) iterim deadlies, ii) fial deadlies. Whatever their ature, the project may be affected by the implemetatio risk if they are ot respected [Hydari H. 2015]. The immediate cosequece is that the plaed values of the project are ot realized, the project idicators are put i difficulty ad what is worse, as we have oted before, the budgets of structural fuds allocated to the EU stated ca be lost. Regardig the implemetatio risk causes, they are diverse ad ofte have a techical ature, such as: a reduced techical capacity of suppliers to execute cotracts, lack of techical equipmet ecessary for the project implemetatio etc.. What arouses the curiosity of this category of risk is the quatificatio (measuremet) method. It icludes techical ad fiacial elemets that have a impact o this type of risk. The implemetatio risk ca geerate severe losses i the budget of the EU member coutries, where this type of risk is ot proper maaged. It is importat to ote that o risk measuremet occurs the project implemetatio time(d i ), for which the iformatio is provided from the cotracts with the beeficiaries; ad the actual executio time (D r ), for which the iformatio is provided from the cotracts with suppliers. These terms determies the delay degree of a project, determied as the ratio betwee the actual executio time ad the plaed time(g î = D r D i 100)of the project. The degree of delay i project implemetatio measures the likelihood of losig a certai part of the project value, as a cosequece of implemetatio cotract failure. Therefore it is importat to quatify the fiacial dimesio of the implemetatio risk ad for this it ca be take ito accout the plaed value of the project i the implemetatio year(pvp), which is also the year of aalysis for the project, adjusted with the degree of delay usig a relatioship of the form: 168

A Busiess Itelligece Istrumet for Detectio ad Mitigatio of Risks Related to Projects Fiaced from Structural Fuds R p = pvp(1 g î ) (1) The itesity of the implemetatio risk ca be expressed i a percetage form, if it is take ito accout the project's value (VP), ad the progressio risk (R p ) accordig to the followig relatioship: R p = V p pvp(1 g î ) V p 100 (2) Accordig to this measuremet coditios for the implemetig risk, it could be see that wheever the degree of delay of a project has sigificat value, the probability of losig a part of the project budget icreases, which may lead to the classificatio of projects ito three major categories: i) projects with low risk of budget loss, ii) projects with medium risk of budget loss, iii) projects with high risk of budget loss. 0 R p 30; projectswithlowriskofbudgetloss R p = { 30 < R p 50; projectswithmediumriskofbudgetloss R p > 50; projectswithhighriskofbudgetloss (3) If the implemetig risk affects oe or more projects, it is probable that a part of the budget allocated to EU coutry to be lost by decommitmet, as ucosumed budgets by Europea rules are lost. I this situatio, with the idetificatio of the implemetig risk, it is ecessary to take further measures to restore the safety of their implemetatio ad to esure the achievemet of the plaed projects. VI. The reductio algorithm of the project implemetatio risk The iformatioal algorithm is based o specific assumptios for each project uder implemetatio ad o a umber of statistical processig mechaisms specific to portfolio theory. Furthermore, the specific istrumets for Structural Fuds assume that the operatioal program is used atiowide by the Member States, while projects are part of the operatioal program. The rule of structural fuds is that the operatioal program icludes several projects(p); i=1 P i. The projects, that are part of the operatioal program, have their particularities as they are o-ifrastructure or ifrastructure projects. The reductio algorithm for the project implemetatio risk aims to establish the structure of portfolios of projects give a level of implemetatio risk, cosidered reasoable ad to establish the portios of the project value that is affected by risk. The value of projects affected by risk becomes a source of iformatio ad a decisio support for the atioal orgaizatios of EU Member States, as it idicates the value of the Structural Fuds budget that may be at risk of losig [Tams S., Hill K., 2015]. I terms of risk mitigatio algorithm, each project (P), which is part of the portfolio of projects, will be defied by: the weight that holds o the total of the 169

Marcel Bolos, Diaa Sabau - Popa, Emil Scarlat, Ioaa Bradea, Camelia Delcea projects value(x p ), the value of implemetatio risk (R p )ad the dispersio of risk compared to the average value recorded i the projects portfolio(σ p ). The dispersio value of implemetatio risk from the average is importat to measure its itesity, give that ay departure from the average would mea a icreased risk with adverse effects o the project portfolio. That is why, for the dispersio measuremet is used the stadard deviatio, adapted to the specific of the projects: (R pi R ) 2 σ 2 p = i=1 (4) N 1 Sice the measuremet value of the implemetatio risk dispersio towards medium is measured i (%) 2, it is ecessary to appeal to a differet otio of statistics for the dispersio measuremet from the mea: the variace, that is quatified after a relatioship of the form: σ p = σ p 2 = (R pi R ) 2 i=1 (5) N 1 Accordig to the above, the project portfolio is formed as part of the operatioal program, i which each project will be characterized by: the weight that holds i the portfolio of projects, the implemetatio risk value ad the risk dispersio from the meap(x p, R p, σ p ). The equatios that will be the basis of the reductio algorithm of the project implemetatio risk will be writte as: R p = i=1 x k R k { σ 2 p = 2 i=1 x k R 2 k + 2 i=1 x k x j σ kj k (6) I additio to the above equatios, it is kow that the project proportio i the total portfolio is equal to 1, accordig to a equatio of the form: i=1 x i = 1 (7) I these coditios will be idetified the uderlyig assumptios of the reductio algorithm for the project implemetatio risk, while a risk value over 50% ca lead to a risky portfolio that geerates losses i EU Member States' budgets. Rewritig these equatios accordig to the above assumptios, which aim to reduce: the risk below 50% ad the average dispersio towards the medium value of the implemetatio risk, usig a set of equatios of the form: R p = x k R k 50 k=1 { σ 2 p = mi j=1 k=1 x j x k k=1 x k = 1 σ kj (8) 170

A Busiess Itelligece Istrumet for Detectio ad Mitigatio of Risks Related to Projects Fiaced from Structural Fuds To solve the optimizatio problem formulated above, we will write the Lagragea problem, which will be based o the objective miimizig fuctio of the variace from the average ad the costraits for the average value of the implemetatio risk. The Lagragea problem becomes: α(x p, τ 1, τ 2 ) = mi j=1 k=1 x j x k σ kj τ 1 ( i=1 x k R k 50) τ 2 ( k=1 x k 1) (9) The optimal coditios of the algorithm are obtaied at the poits where the first order derivatives for variables ad parameters τ 1 ; τ 2 are zero, as follows: α = 0; x k α = 0; τ 1 α { = 0; τ 2 (10) After some computatios we obtai the followig optimal coditios for the iformatioal algorithm, amely: α = x j=1 x j σ kj τ 1 k=1 R k τ 2 = 0; k α N = τ K=1 x k R k 50 = 0; (11) 1 α = x τ k=1 k 1 = 0; 2 form: To simplify the calculatios, the above system ca be writte i a matrix of x 1 σ 11 σ 12 σ 1k x 2 σ 21 σ 22 σ 2k (. ) ( ) τ 1 (R 1 R 2 R k ) τ 2 (11 1) = 0 (12) x k σ k1 σ k2 σ kk From equatio (11) it ca be determied the weight that each project must have i the total portfolio, accordig to the weights vector (X), the variace-covariace matrix (σ), ad the projects implemetatio risks vector (R) as follows: or X σ τ 1 R τ 2 e = 0 (13) X = τ 1 σ 1 R + τ 2 σ 1 e (14) 171

Marcel Bolos, Diaa Sabau - Popa, Emil Scarlat, Ioaa Bradea, Camelia Delcea It is formed a system of two equatios with ukows (τ 1 )ad(τ 1 ), which will take the followig form: { τ 1R t σ 1 R + τ 2 e t σ 1 R = 50 τ 1 R t σ 1 e + τ 2 e t σ 1 e = 1 From solvig the system of equatios will be obtaied the Lagragea parameters as: τ 1 = τ 2 = 50 et σ 1 R 1 e t σ 1 e Rt σ 1 Re t σ 1 = R R t σ 1 ee t σ 1 e Rt σ 1 R 50 R t σ 1 e 1 Rt σ 1 Re t σ 1 = R R t σ 1 ee t σ 1 e 50(e t σ 1 e) e t σ 1 R (R t σ 1 R)(e t σ 1 e) (R t σ 1 e)(e t σ 1 R) R t σ 1 R 50(R t σ 1 e) (R t σ 1 R)(e t σ 1 e) (R t σ 1 e)(e t σ 1 R) The values obtaied for Lagragea parameters are replaced i equatio (14) to obtai the fial structure of the portfolio, which cosists of (x 1 x 2 x ) weights of the form: 1 x = (R t σ 1 R)(e t σ 1 e) (R t σ 1 e)(e t σ 1 R) [(50(et σ 1 e) e t σ 1 R)σ 1 R + (R t σ 1 R 50(R t σ 1 e)σ 1 e)] To simplify the calculatios we will proceed to some additioal otatio as: X 1 = e t σ 1 e; X 2 = R t σ 1 e = e t σ 1 R; X 3 = R t σ 1 R; X 4 = X 1 X 3 X 2 2 ; Accordigly to this, a simplified form of portfolio compositio (P) will be: x = 1 x 4 [(50x 1 x 2 )σ 1 R + (x 3 50X 2 )σ 1 e] (15) The structure of projects portfolio (P) is thus iflueced by the value of each project implemetatio risk, covetioally deoted (R p )ad the variace from the average implemetatio risk(σ p ), the obtaied results beig of the form: 172

A Busiess Itelligece Istrumet for Detectio ad Mitigatio of Risks Related to Projects Fiaced from Structural Fuds x 1 a 1 x 2 a 2 (. ) = (. ) (16) x a The project value after the calculatios is adjusted by implemetatio risk restricted to be less tha 50%, deoted by (V p (A p )), which will be computed as the differece betwee the iitial project value (V pi ) ad the adjustmet value with the project implemetatio risk ((A p ) = V P a k, after a relatioship of the form: V p = V pi A p (17) The ew adjusted value of the project will provide iformatio o the portio of the project that is ot affected by risk, whe there is a likelihood of implemetatio below 50% previously established as a value till the risk of project budget loss is below 50 %. The value of the portfolio risk, while there is a project implemetatio risk below 50%, ca be expressed by the relatioship: σ 11 σ 12 σ 1 x 1 σ 2 σ 21 σ 22 σ 2 x 2 p = (x 1 x 2 x ) ( ) (. ) (18) σ k1 σ k2 σ k x The weights (x 1 x 2 x ) are the recalculated weights for projects i the portfolio, i terms of a implemetatio risk below 50%, determied accordig to the relatioship (15). This meas that each project from the structure of the operatioal program will have the value structured ito two compoets amely: ((V p (A p )) determied as the product of the project value ad value share i total project projects (a k ), obtaied by recalculatio accordig to the implemetatio risk ad a project value at risk(v Rk ), so that the portfolio of projects ca be rewritte accordig to the formula: V P = (a 1 a 2 a k ) ( V p1 V p2 ) + (V. Rk1V Rk2 V Rk) (19) V pk As the share of the value of the projects that are part of the portfolio affected by risk (V Rk ) is higher tha the value uaffected by risk (or risk below 50%)(V p (A p )), we ca say that the Structural Fuds budget that is allocated to the Member State is affected by the project implemetatio risk ad there is a probability to lose some of the budget by decommitmet risk. I the opposite 173

Marcel Bolos, Diaa Sabau - Popa, Emil Scarlat, Ioaa Bradea, Camelia Delcea situatio, the probability of losig resources from the Structural Fuds budget is quite limited, ad that operatioal program maagemet is properly implemeted. A ew risk idicator is fouded. It is useful for specialists i fiace ad iformatio techology, ad is called the global implemetatio risk idicator(r gi ), which provides iformatio o the probability that a operatioal program (which icludes a portfolio of projects) geerates losses from structural fuds of EU Member States, resultig from project implemetatio. The overall implemetatio risk of operatioal programs may be determied by the formula: R gi = i=1 V Rki 100 (20) i=1 a i V Pi I its simplest form, the overall implemetatio risk of operatioal programs ca take values(r gi 1), which implies that there is a risk of losig resources from the EU budget allocated to the Member State. If (R gi < 1), implies that structural Fuds budget has a maagemet that is correctly implemeted without the risk of losig the short-term fiacial resources. VII. Decisio-makig iterface for risk maagemet of the atioal orgaisms with resposibilities i the structural fuds area I ay project maagemet authority, there is a lot of iformatio, eve computed idicators, but the iformatio that is really eeded are ot kow. Dashboard has the ability to calculate, commuicate ad provide the adequate iformatio, relevat for policy formulatio, decisio makig, ad comparig the results with the strategic objectives. The mechaism through which Dashboards are used by atioal project maagemet orgaism for decisio makig is reflected i the followig figure: 174

A Busiess Itelligece Istrumet for Detectio ad Mitigatio of Risks Related to Projects Fiaced from Structural Fuds Figure 1.The correlatio betwee Dashboard ad decisio makig process Further, a Dashboard is built i order to moitor the key risk idicators of the portfolio risk maagemet. The aalyzed portfolio cosists of 10 projects fiaced by the Structural Fuds, for which are calculated the mai idicators reflectig the implemetatio risk. The projects are implemeted i the North- West of Romaia. Figure 2.The key idicators computed withi the reductio algorithm Some thresholds were established, accordig to the formulas foud i the reductio algorithm of the project implemetatio risk. If a threshold was exceeded, the risk maager automatically receives a message, to udertake urget 175

Marcel Bolos, Diaa Sabau - Popa, Emil Scarlat, Ioaa Bradea, Camelia Delcea remedial actios. The exceedig of thresholds is idicated by the colors of the risk semaphore [Bradea I.A., Sabău-Popa D., Boloș M. 2014]. Whe the risk is i the red zoe, are recorded sigificat losses, urget actios must be take to cotrol these losses. Whe the risk is i the yellow zoe, the risk maager has to take actios i order toprevet the icreasig of risk exposure. Figure 3.The key idicators computed withi the reductio algorithm For the aalyzed portfolio, the iitial average risk is 42.3%, beig foud i the yellow zoe ad more worryigly close to the red zoe. Accordig to the coditios of the implemetig risk, it could be see that wheever the average risk is higher tha 30%, the probability of losig a part of the project budget icreases. Of the 10 projects aalyzed, 3 projects have the values for itesity of the implemetatio risk over 0.33, reflectig a worseig of the situatio, chages i treds ad a icreased exposure to risk, beig ecessary to take prevetive measures.4 projects registered high values for the cosidered risk, project umber 7 havig a value equal to 0.89. It is also worth metioig that the project umber 8 is ot exposed to this risk. The overall implemetatio risk of operatioal programs is determied. The global risk of implemetatio takes the value of 0.5015, idicatig a great exposure to this risk, the losses emergig from it beig large. Its value provides iformatio o the probability that the portfolio of projects geerates losses from project implemetatio. 176

A Busiess Itelligece Istrumet for Detectio ad Mitigatio of Risks Related to Projects Fiaced from Structural Fuds Figure 4. The Dashboard for moitorig the risk related to projects fiaced from Structural Fuds As it is preseted i the figure above, after applyig the reductio algorithm for the implemetatio risk, was idetified a ew structure of the portfolio that would reduce the risk (xp). Also, a ew adjusted value of the project is computed, value that will provide iformatio o the portio of the project that is ot affected by risk. VIII. Cocludig remarks: A portfolio with projects structure, whose implemetatio risk is below 50%, accordig to the algorithm assumptios provides the ecessary coditios to esure a prudet structural fuds maagemet of EU Member States through operatioal programs. Ay value higher tha 50% ca lead to loss o log-term, uless appropriate measures are take to reduce this risk. The coclusio is that for a certai value of projects implemetatio risk ad its dispersio from the mea, will have to be a certai structure of the projects portfolio to esure that the risk of 177

Marcel Bolos, Diaa Sabau - Popa, Emil Scarlat, Ioaa Bradea, Camelia Delcea budget loss for each project is withi the values set as acceptable for the operatioal program. The project portfolios are the key of success for usig Structural Fuds by EU members, so oce they are implemeted; there are equal opportuities to be successful. Durig project implemetatio ievitable risks emerge. If risks of a project become cotagious for other projects, we are witessig a pheomeo that ca compromise the chace that a program fiaced by Structural Fuds to be well carried out. Therefore the cocer of specialists i fiace ad iformatio techology should be focused o two ways, amely: i) early idetificatio ad quatificatio of risk, to esure a efficiet maagemet to save these projects, ii) establishmet of iformatioal risk reductio algorithms related to portfolios of projects, fallig withi the structure of a operatioal program. The permaet moitorig of the implemetatio risk should be realized with the help of a Dashboard. Thorough it, the KRIs gives iformatio about the level ad tred of the implemetatio risk, which may affect the budget for each project. REFERENCES [1] Bradea I.A., Sabău-Popa D.C., Boloș M.I.(2014),Usig Dashboards i Busiess Aalysis;Aals of the Uiversity of Oradea. Ecoomic Scieces, Tom XXIII, 1 st issue, pp. 851-856, ISSN: 1582-5450, ISSN: 1222-569X; [2]Boloș M.I, Sabău-Popa D.C., Filip P., Maolescu A. (2015),Developmet of a Fuzzy Logic System to Idetify the Risk of Projects Fiaced from Structural Fuds; Iteratioal Joural of Computers Commuicatios & Cotrol, 10(4), pp. 480-491,ISSN: 1841-9836; [3]Cagliao A.C., Grimaldi S., Rafele C. (2015),Choosig Project Risk Maagemet Techiques. A Theoretical Framework; Joural of Risk Research, vol. 18, issue 2, pp. 232-248, ISSN: 1366-9877; [4] Davidescu A., Paul Vass A.M., Gogoea R.M., Zaharia M.(2015),Evaluatig Romaia Eco-IovatioPerformaces i Europea Cotext;Sustaiability, 7(9), 12723-12757, ISSN 2071-1050, http://www.mdpi.com/2071-1050/7/9/12723/htm; [5] Delcea C., Bradea I.A., Scarlat E. (2013),A Computatioal Grey Based Model for Compaies Risk Forecastig; The Joural of Grey System, issue 3, vol. 25, pp. 70-83, Lodra, ISSN: 0957-3720; [6] Hydari H.(2015),The Rules of Project Risk Maagemet: Implemetatio Guidelies for Major Projects; Project Maagemet Joural, vol. 46, issue 4, pp. e4, ISSN: 8756-9728; [7] Pirciog S., Ciuca V., Popescu M.E.(2015), The Net Impact of Traiig Measuresfrom Active Labour Market Programs i Romaia SubjectiveadObjectiveEvaluatio; ProcediaEcoomicsadFiace, vol. 26, pp. 339 344; [8] Tams S., Hill K.(2015),Iformatio Systems Project Maagemet Risk: Does it Matter for Firm Performace?; Joural of Orgaizatioal ad Ed User Computig, vol. 27, issue 4, pp. 43-60, ISSN: 1546-2234. 178