• Optimal Portfolio Management in Alaska: A Case Study on Risk Characteristics of Environmental Consulting Companies

      Willingham, Katura (University of Alaska Anchorage, 2016-12-01)
      Sharp declines in global oil prices have led to a marked contraction in Alaska’s natural resource dependent economy. This, coupled with record the State’s budgetary shortfalls and a decrease in incoming federal dollars, has created a climate where environmental consulting companies must accept riskier projects to balance portfolio growth and security. As a result, companies must adopt a risk-based portfolio management approach as both a high level strategy and a core management practice. It is important to specifically identify projects best suited for an organization’s tolerance for risk based off of the supply and demand of the industry in rapidly changing economic conditions. Therefore, the aims of this project report are to help environmental consulting companies identify risk characteristics and manage their portfolio, as well as develop a tool to guide decision-making and selecting projects best suited for a companies’ portfolio strategy. The results of this research may provide Alaska based environmental companies with a clear understanding of the types of projects that offer both development and financial security for an organization. This research paper will present the methodology, results, and an environmental consulting portfolio management tool.