Monitoring – a mechanism of continuous monitoring of the results of the implementation of investment projects in a changing market.
Monitoring of investment projects includes:
• Select the most important areas of investment activity;
• construction of a system of reporting indicators for each area of investment activity;
• Developing evaluation criteria for effective implementation of each area of investment activity;
• Establish frequency of data on the investment project;
• analysis of the main reasons for the deviation from the normal course of investment project implementation;
• identifying the reserves and possibilities for the normalization of the implementation of works in accordance with the agreed schedule of the investment project;
• Necessary adjustments to the schedules of works and investment project financing.
In the process of investment activity all investors seek to improve their position in the capital market through an objective evaluation of investment effectiveness and timely reinvestment in the occurrence of adverse events for the use of assets. Therefore, the system of operational management portfolio includes activities related both to the implementation of projects and with their current correction, until the release of the active investment programs investing.
The need to adjust the investment portfolio is dictated by two factors:
1. appear on the market more efficient facilities or instruments to invest;
2. decrease the effectiveness of individual constituent elements of the investment portfolio.
The decision to withdraw from the investment projects and the sale of financial instruments already existing portfolio of investments is considered the most painful, but often forced for various reasons the procedure.