This thesis suggests implementation of human resources management system to manage project portfolio in small organizations. Main gist is implementation and demonstration of the system, that is able to assign human resources to planned projects. The thesis also provides basic theory of projects and human resources management in projects. Based on this theory the system is analysed, designed and implemented.

Financial institutions manage numerous portfolios whose risk must be managed continuously, and the large amounts of data that has to be processed renders this a considerable effort. As such, a system that autonomously detects anomalies in the risk measures of financial portfolios, would be of great value. To this end, the two econometric models ARMA-GARCH and EWMA, and the two machine learning based algorithms LSTM and HTM, were evaluated for the task of performing unsupervised anomaly detection on the streaming time series of portfolio risk measures. Three datasets of returns and Value-at-Risk series were synthesized and one dataset of real-world Value-at-Risk series had labels handcrafted for the experiments in this thesis. The results revealed that the LSTM has great potential in this domain, due to an ability to adapt to different types of time series and for being effective at finding a wide range of anomalies. However, the EWMA had the benefit of being faster and more interpretable, but lacked the ability to capture anomalous trends. The ARMA-GARCH was found to have difficulties in finding a good fit to the time series of risk measures, resulting in poor performance, and the HTM was outperformed by the other algorithms in every regard, due to an inability to learn the autoregressive behaviour of the time series. / Finansiella institutioner hanterar otaliga portföljer vars risk måste hanteras kontinuerligt, och den stora mängden data som måste processeras gör detta till ett omfattande uppgift. Därför skulle ett system som autonomt kan upptäcka avvikelser i de finansiella portföljernas riskmått, vara av stort värde. I detta syftet undersöks två ekonometriska modeller, ARMA-GARCH och EWMA, samt två maskininlärningsmodeller, LSTM och HTM, för ändamålet att kunna utföra så kallad oövervakad avvikelsedetektering på den strömande tidsseriedata av portföljriskmått. Tre dataset syntetiserades med avkastningar och Value-at-Risk serier, och ett dataset med verkliga Value-at-Risk serier fick handgjorda etiketter till experimenten i denna avhandling. Resultaten visade att LSTM har stor potential i denna domänen, tack vare sin förmåga att anpassa sig till olika typer av tidsserier och för att effektivt lyckas finna varierade sorters anomalier. Däremot så hade EWMA fördelen av att vara den snabbaste och enklaste att tolka, men den saknade förmågan att finna avvikande trender. ARMA-GARCH hade svårigheter med att modellera tidsserier utav riskmått, vilket resulterade i att den preseterade dåligt. HTM blev utpresterad utav de andra algoritmerna i samtliga hänseenden, på grund utav dess oförmåga att lära sig tidsserierna autoregressiva beteende.

Factor models attribute stock returns to a linear combination of factors. A model with great explanatory power (R2) can be used to estimate the systematic risk of an investment. One of the most important factors is the industry which the company of the stock operates in. In commercial risk models this factor is often determined with a manually constructed stock classification scheme such as GICS. We present Natural Language Industry Scheme (NLIS), an automatic and multivalued classification scheme based on topic modeling. The topic modeling is performed on transcripts of company earnings calls and identifies a number of topics analogous to industries. We use non-negative matrix factorization (NMF) on a term-document matrix of the transcripts to perform the topic modeling. When set to explain returns of the MSCI USA index we find that NLIS consistently outperforms GICS, often by several hundred basis points. We attribute this to NLIS’ ability to assign a stock to multiple industries. We also suggest that the proportions of industry assignments for a given stock could correspond to expected future revenue sources rather than current revenue sources. This property could explain some of NLIS’ success since it closely relates to theoretical stock pricing. / Faktormodeller förklarar aktieprisrörelser med en linjär kombination av faktorer. En modell med hög förklaringsgrad (R2) kan användas föratt skatta en investerings systematiska risk. En av de viktigaste faktorerna är aktiebolagets industritillhörighet. I kommersiella risksystem bestäms industri oftast med ett aktieklassifikationsschema som GICS, publicerat av ett finansiellt institut. Vi presenterar Natural Language Industry Scheme (NLIS), ett automatiskt klassifikationsschema baserat på topic modeling. Vi utför topic modeling på transkript av aktiebolags investerarsamtal. Detta identifierar ämnen, eller topics, som är jämförbara med industrier. Topic modeling sker genom icke-negativmatrisfaktorisering (NMF) på en ord-dokumentmatris av transkripten. När NLIS används för att förklara prisrörelser hos MSCI USA-indexet finner vi att NLIS överträffar GICS, ofta med 2-3 procent. Detta tillskriver vi NLIS förmåga att ge flera industritillhörigheter åt samma aktie. Vi föreslår också att proportionerna hos industritillhörigheterna för en aktie kan motsvara förväntade inkomstkällor snarare än nuvarande inkomstkällor. Denna egenskap kan också vara en anledning till NLIS framgång då den nära relaterar till teoretisk aktieprissättning.

Syftet med detta arbete har varit att undersöka om berättelsen kan fungera som katalysator för elevernas reflektion över sig själva och deras situation i ett postmodernt samhälle. Väsentliga frågor i sammanhanget blev dels huruvida de själva kunde bli medvetna om och reflektera över sina egna och andras strategier i en sådan omfattande social omvandling. Ett sådant fenomen som kom i fokus var vårt behov av ytliga statussymboler.Det i grunden kvalitativa arbetet bygger på tre synvinklar och tillika källor. För det första, mig själv som oundvikligt subjektivt filter; för det andra eleverna och för det tredje, mediala källor som på olika sätt har kunnat användas i sammanhanget.Under arbetets lopp har jag kommit fram till att arbetets informativa, reflektiva och diskursiva processer i sig utgjorde ett lika intressant material som slutsatserna. / The purpose of this work has been to examine the function of storytelling as an induct-ive way to develop self reflection and environmental awareness of the students. Key subjects have been if they could be attentive to the very reflective process itself and to the strategies we apply, when to cope with dynamic changes as those of the postmodern society. Also the possibility to find basic explanations, to specially one of these strategies – one that has been more and more frequently used – became a pursuit in this work. The phenomenon in mind is our seemingly growing demand for “superficial valuables”.This work is basically qualitative. Three perspectives – as well as sources of inform-ation – have been developed through the process of this work: firstly, the inevitably subjective experiences of my own; secondly, the students; and thirdly, different forms of applicable public media. Especially the contribution from the students can’t be overstated. Initially it was them who made me aware of the phenomenon, described above. Moreover they gave input, partly through the literature seminar and the related discussion, partly through a minor enquiry consisting of a few but fundamental questions connected to the matter of “wealth” and “ability”.Quite early during the progression of this work I came to an understanding that the informative, the introspective and the communicative processes of the work itself constituted a most interesting substance. Hence, I made a more careful attempt to describe this development and my thoughts connected to it, rather than giving too much focus on the aftermath. Retrospectively seen, it presents somewhat self-evident answers of the two initial questions above. Yes, storytelling might work as a complement to more radical experiences of the real life. It can be used as a key to existential reflection in an urban security-devoting postmodern society. Also obviously, there seem to be more profound explanations to our quest for superficial valuables – needs beyond the very appeal. They could be connected to the natural instinct of individual survival through real or “illusory” acceptance and irreplaceability within one or more collective social orders – in short, the importance of being important.

Стабильность и эффективность работы коммерческого банка зависит от того, насколько грамотно сформирована его организационная структура, где огромную долю занимает организация кредитного процесса. Основной задачей банков является выдача кредитов, а кредит – это безусловно опора для современной экономики, неотъемлемый элемент экономического развития страны. Кредитование на сегодняшний используют как физические, так и юридические лица, иными словами кредитами пользуются все, начиная с государства и правительства и заканчивая гражданами. Целью выпускной квалификационной работы является исследование теоретических и практических аспектов управления кредитным портфелем и оценка эффективности данного процесса в ПАО Сбербанк. Теоретическая значимость диссертационного исследования заключается в том, что его результаты расширяют теоретическую базу для комплексного подхода исследования эффективности управления портфеля потребительского кредитования. Практическая значимость ВКР обусловлена тем, что содержащиеся в нем выводы, предложения и экономически обоснованные рекомендации позволяют улучшить финансовое состояние ПАО Сбербанк, усовершенствовать эффективность управления кредитным портфелем. / The stability and efficiency of a commercial bank depends on how well its organizational structure is formed, where a huge share is taken by the organization of the credit process. The main task of banks is to issue loans, and credit is certainly a support for the modern economy, an integral element of the country's economic development. Lending today is used by both individuals and legal entities, in other words, loans are used by everyone, starting with the state and the government and ending with citizens. The purpose of the final qualification work is to study the theoretical and practical aspects of credit portfolio management and to evaluate the effectiveness of this process in Sberbank. The theoretical significance of the dissertation research lies in the fact that its results expand the theoretical basis for a comprehensive approach to the study of the effectiveness of consumer credit portfolio management. The practical significance of the WRC is due to.

This thesis examines the risk profile of Electronically Traded Funds and the dependence of the ESG rating on risk. 527 ETFs with exposure globally were analyzed. Risk measures considered were Value-at-Risk and Expected Shortfall, while some other metrics of risk was used, such as the volatility, maximum drawdown, tail dependece, and copulas. Stress tests were conducted in order to test the resilience against market downturns. The ETFs were grouped by their ESG rating as well as by their carbon intensity. The results show that the lowest risk can be found for ETFs with either the lowest ESG rating or the highest. Generally, a higher ESG rating implies a lower risk, but without statistical significance in many cases. Further, ETFs with a higher ESG rating showed, on average, a lower maximum drawdown, a higher tail dependence, and more resilience in market downturns. Regarding volatility, the average was shown to be lower on average for ETFs with a higher ESG rating, but no statistical significance could be found. Interestingly, the results show that investing sustainably returns a better financial performance at a lower risk, thus going against the Capital Asset Pricing Model. / Denna studie undersöker riskprofilen för elektroniskt handlade fonder och sambandet mellan risk och hållbarhetsbetyg. 527 ETF:er med global exponering analyserades. De riskmått som användes var Value-at-Risk och Expected Shortfall, och några andra mått för risk användes, däribland volatilitet, största intradagsnedgång, samband i svansfördelning, och copulas. Stresstest utfördes för att testa motsåtndskraften i marknadsnedgångar. ETF:erna grupperades med hjälp av deras hållbarhetsbetyg och deras koldioxidintensitet. Resultatet visar att lägst risk finns i ETF:er med högst respektive lägst hållbarhetsbetyg. Generellt har ETF:er med högre hållbarhetsbetyg en lägre risk, med endast viss statistisk signifikans. Därtill har ETF:er med högre hållbarhetsbetyg, i genomsnitt, en lägre största intradagsnedgång, högre samband i fördelningssvansarna och är mer motståndskraftiga i marknadsnedgångar. Volatiliteten är i genomsnitt lägre desto högre hållbarhetsbetyget är, men detta resultat saknar statistisk signifikans. Ett intressant resultat är att om man investerar hållbart kan man få en högre avkastning med en lägre risk, vilket går emot Capital Asset Pricing Model.

[pt] A dissertação é composta por três ensaios empíricos que usam dados históricos de ações americanas. O primeiro avalia o desempenho de uma abordagem de otimização de carteiras baseada na otimização de Markowitz. Os resultados mostram valor econômico positivo do portfólio resultante, mesmo na presença de custos de transação. O segundo artigo visa comparar e combinar a técnica desenvolvida no artigo anterior à abordagem paramétrica e avalia o desempenho da combinação das técnicas. Os resultados mostram que o desempenho da técnica paramétrica é inferior à técnica de Markowitz modificada e pouco melhor do que o mercado agregado. Isto sugere que o valor econômico de explorar a estrutura de covariância entre as ações é superior a aumentar pesos em ações cujas características oferecem relações risco-retorno maiores até o período. O terceiro ensaio avalia modelos de previsão da variação de retornos entre ações. As estatísticas utilizadas apontam que os modelos padrão não possuem poder preditivo superior a modelos que supõem que não há variação ou que usam a média histórica. Por meio do uso tanto de combinações de modelos lineares quanto estimação restrita de modelos com muitos fatores, mostro que é possível obter resultados ligeiramente superiores. / [en] The dissertation consists of three empirical essays which use historical data of stocks listed in NYSE. The first essay evaluates a portfolio selection approach based on the Markowitz optimization. Results show the portfolios have positive economic value, even after including transaction costs. The second essay compares the technique proposed in the first essay to the parametric approach. Results show the parametric approach performs worse than the modified Markowitz approach and shlightly better than the aggregated market. This suggests that exploring the covariance structure of stocks provides better results than overweighting stocks with characteristics associated to better riskreturn ratios in the past. The third essay evaluates models that forecast the cross-sectional variation in stock returns. Given the statistics used, benchmark models do not show greater forecasting power than skeptical or naive models. By using linear model combination or lasso technique on a model with several factors, I show it is possible to obtain slightly better results.

<p>Optimization under uncertainty is the field of optimization where the data or the optimization model itself has uncertainties associated with it. Such problems are more commonly referred to as stochastic optimization problems. These problems capture the broad idea of making optimal decisions under uncertainty. An important class of these stochastic optimization problems is chance-constrained optimization problems, where the decision maker seeks to choose the best decision such that the probability of violating a set of uncertainty constraints is within a predefined probabilistic threshold risk level. Such stochastic optimization problems have found a lot of interest in the service industry as the service providers need to satisfy a minimum service level agreement (SLA) with their customers. Satisfying SLA in the presence of uncertainty in the form of probabilistic failure of infrastructure poses many interesting and challenging questions. In this thesis, we answer a few of these questions.</p> <p>We first explore the problem of quantifying uncertainties that adversely impact the service provider's infrastructure, thereby hurting the service level agreements. In particular we address the probability quantification problem, where given an uncertainty set, the goal is to quantify the probability of an event, on which the optimal value of an optimization problem exceeds a predefined threshold value. The novel techniques we propose, use and develop ideas from diverse literatures such as mixed integer nonlinear program, chance-constrained programming, approximate sampling and counting techniques, and large deviation bounds. Our approach yields the first polynomial time approximation scheme for the specific probability quantification problem we consider. </p> <p>Our next work is inspired by the ideas of risk averse decision making. Here, we focus on studying the problem of minimizing risk functions. As a special case we also explore the problem of minimizing the Value at Risk (VaR), which is a well know non-convex problem. For more than a decade, the well-known, best convex approximation to this problem has been obtained by minimizing the Conditional Value at Risk (CVaR). We proposed a new two-stage model which formulates these risk functions, which eventually leads to a bilinear optimization problem, a special case of which is the VaR minimization problem. We come up with enhancements to this bilinear formulation and use convexification techniques to obtain tighter lower and upper convex approximations to the problem. We also find that the approximation obtained by CVaR minimization is a special case of our method. The overestimates we construct help us to develop tighter convex inner approximations for the chance constraint optimization problems.</p>

[EN] The construction of railway infrastructure networks requires heavy investment, long planning and execution times and extended life cycles. An important family of projects in Railway Engineering are the Maintenance, Renewal and Improvement (MR&I) projects. They are critical to maintaining railway infrastructures in good condition and to adapt them to environmental changes and new operating conditions and needs. MR&I action plans have a great impact in the short term because they affect the performance of operating facilities A critical issue for public infrastructure managers and planners is the effective allocation of the scarce resources available for maintenance and repair of railway infrastructures. Obsolescence and lack of adequate maintenance and repair of the railway network affect productivity and lead to increased costs over time. Every year the Manager of a rail network area is faced with different MR&I needs. This involves different projects to be executed with different levels of urgency, different levels of investment and different improvement measures and action plans on the railway network. Therefore, the Manager has a portfolio of MR&I projects and a limited budget. The main problem that the manager faces is setting priorities among the projects to decide which ones will be executed first. It is a complex problem due to the number of different projects and criteria to be considered. Classical approaches are based upon the Cost Benefit analysis (CBA) but there are great uncertainties and variations between the economic values used in different models and the results are heavily dependent on the specific methodology adopted. Methods based upon Multiple Criteria Decision Analysis (MCDA) allow mixing quantitative and qualitative criteria, aggregate multiple experts evaluations and, in general, obtain more robust project rankings than CBA. There is little evidence in the scientific literature of the use of MCDA to similar cases. Research conducted in this thesis studies the decision-making process to choose MR&I projects in a railway network. Technicians and managers are given a methodological tool to help them establish a priority between all the projects in the MR&I portfolio. The problem is addressed as a Multi criteria decision making (MCDM) problem in which thee different ANP models have been used, comparing the results obtained with all of them: Analytic Hierarchical Process (AHP), Analytic Network Process with subnetworks for Benefits and Costs (ANP-BC) and the Analytic Network Process with subnetworks for Costs, Benefits, Opportunities and Risks (ANP-BOCR) The main contributions of this works are: - Deep analysis of the decision criteria. - Design of a procedure for evaluating many different alternative projects. - A decision making process which is both systematic and strict has been obtained. It can be generalized to other areas of the railway infrastructure management company. Thanks to the results the budget can be used in the best-valued projects according to the criteria established by the decision maker. The priorization is then obtained in a transparent and documented way. / [ES] La construcción de infraestructuras ferroviarias requiere de grandes inversiones, largos plazos de planificación y ejecución y los ciclos de vida totales son muy largos también. Dentro de los proyectos que se realizan en este tipo de infraestructuras, una parte muy importante son las actuaciones sobre líneas en servicio, que se denominan actuaciones de mantenimiento, rehabilitación y mejora (MR&I por sus siglas en ingles de Maintenance, Renewal and Improvement). Las actuaciones de MR&I tienen un gran efecto a corto plazo al afectar al rendimiento de instalaciones que ya están en servicio en el momento de la actuación . La asignación eficaz de los escasos recursos disponibles para MR&I por parte de los gestores de infraestructuras es clave para mantener y mejorar el desempeño general de la red. Cada año el gestor de una zona de la red se enfrenta a diferentes necesidades de mantenimiento, rehabilitación y mejora de la red, por tanto, tiene conjunto muy grande de proyectos de MR&I y un presupuesto limitado para ejecutarlos. El problema que se plantea es seleccionar qué proyectos tienen prioridad a la hora de su ejecución y qué criterios ha de considerar para establecer esa prioridad. Es un problema complejo debido al amplio número de proyectos posibles y de criterios a considerar. Los métodos clásicos más utilizados se basan en el enfoque de análisis coste-beneficio, pero existen grandes variaciones e incertidumbres a la hora de obtener los valores económicos y los resultados del análisis dependen mucho de la metodología específica adoptada. Los métodos basados en el Análisis Multicriterio de Decisiones (Multiple Criteria Decision Analysis MCDA) permitan integrar valoraciones cuantitativas y cualitativas, agregar las preferencias de varios expertos y, en general, obtener ordenaciones de proyectos más robustas que el CBA. No existe apenas evidencia de la aplicación de MCDA al problema planteado en la literatura científica. La investigación presentada en esta tesis estudia el proceso de toma de decisiones para la selección de proyectos de MR&I en una red ferroviaria. Se dota a los técnicos responsables y a los gestores del mantenimiento de los administradores ferroviarios de una herramienta metodológica que les ayude a establecer una prioridad entre la cartera de proyectos de MR&I. El problema se afronta como una toma de decisión multicriterio (MCDM) en la que se han utilizado tres modelos del método ANP, comparando los resultados entre sí: el modelo jerárquico basado en el Proceso Analítico Jerárquico (AHP) , el proceso analítico en red con una subred de costes y otra de beneficios (ANP-BC) y el proceso analítico en red con cuatro subredes: beneficios, oportunidades, costes y riesgos (ANP-BOCR). Las principales contribuciones de este trabajo son: - El profundo análisis realizado sobre los criterios de decisión. - Se ha diseñado un procedimiento para evaluar un conjunto muy numeroso de actuaciones alternativas. - Se ha obtenido un proceso de toma de decisiones riguroso y sistemático que se puede generalizar para otras zonas de gestión de la Compañía Gestora de las Infraestructuras ferroviarias El resultado permite utilizar el presupuesto en los proyectos mejor valorados de acuerdo a los criterios establecidos por el decisor. Obteniéndose la priorización de forma transparente y documentada. / [CA] La construcció d'infraestructures ferroviàries requereix de grans inversions, llargs terminis de planificació i execució i els cicles de vida totals són molt llargs també. Dins dels projectes que es realitzen en aquest tipus d'infraestructures, una part molt important són les actuacions sobre línies en servei, que es denominen actuacions de manteniment, rehabilitació i millora (MR&I per les seues sigles en angles de Maintenance, Renewal and Improvement). Les actuacions de MR&I tenen un gran efecte a curt termini en afectar al rendiment d'instal·lacions que ja estan en servei en el moment de l'actuació . L'assignació eficaç dels escassos recursos disponibles per a MR&I per part dels gestors d'infraestructures és clau per a mantenir i millorar l'acompliment general de la xarxa. Cada any el gestor d'una zona de la xarxa s'enfronta a diferents necessitats de manteniment, rehabilitació i millora de la xarxa, per tant, té un conjunt molt gran de projectes de MR&I i un pressupost limitat per a executar-los. El problema que es planteja és seleccionar quins projectes tenen prioritat a l'hora de la seua execució i quins criteris ha de considerar per a establir aqueixa prioritat. És un problema complex a causa de l'ampli nombre de projectes possibles i de criteris a considerar. Els mètodes clàssics més utilitzats es basen en l'enfocament d'anàlisi cost-beneficie, però existeixen grans variacions i incerteses a l'hora d'obtenir els valors econòmics i els resultats de l'anàlisi depenen molt de la metodologia específica adoptada. Els mètodes basats en l'Anàlisi Multicriteri de Decisions (Multiple Criteria Decision Analysis MCDA) permeten integrar valoracions quantitatives i qualitatives, agregar les preferències de diversos experts i, en general, obtenir ordenacions de projectes més robustes que el CBA. No existeix apenes evidencia de l'aplicació de *MCDA al problema plantejat en la literatura científica. La recerca presentada en aquesta tesi estudia el procés de presa de decisions per a la selecció de projectes de MR&I en una xarxa ferroviària. Es dota als tècnics responsables i als gestors del manteniment dels administradors ferroviaris d'una eina metodològica que els ajude a establir una prioritat entre la cartera de projectes de MR&I. El problema s'afronta com una presa de decisió multicriteri (MCDM) en la qual s'han utilitzat tres models del mètode ANP, comparant els resultats entre si: el model jeràrquic basat en el Procés Analític Jeràrquic (AHP) , el procés analític en xarxa amb una subxarxa de costos i una altra de beneficis (ANP-BC), i el procés analític en xarxa amb quatre subxarxes: beneficis, oportunitats, costos i riscos (ANP-BOCR). Les principals contribucions d'aquest treball són: - La profunda anàlisi realitzada sobre els criteris de decisió. - S'ha dissenyat un procediment per a avaluar un conjunt molt nombrós d'actuacions alternatives. - S'ha obtingut un procés de presa de decisions rigorós i sistemàtic que es pot generalitzar per a altres zones de gestió de la Companyia Gestora de les Infraestructures ferroviàries El resultat permet utilitzar el pressupost en els projectes millor valorats d'acord als criteris establits pel decisor. Obtenint-se la priorització de forma transparent i documentada. / Montesinos Valera, J. (2015). Aplicación de las técnicas AHP, ANP-BC y ANP-BOCR de análisis multicriterio de decisiones a la selección de carteras de proyectos de mantenimiento, rehabilitación y mejora en infraestructuras ferroviarias [Tesis doctoral]. Universitat Politècnica de València. https://doi.org/10.4995/Thesis/10251/56821

The focus of strategy research has long revolved around strategy formulation rather thanstrategy implementation, despite the evidence indicating that intended strategies are rarelyachieved. Project portfolio management, PPM, assumes a crucial role in enabling strategyimplementation and can be regarded as a representation of the organization's actual pursuedstrategy. Existing research on PPM has predominantly centered around portfolios in the contextof new product development, NPD, and research and development, R&amp;D. However, there hasbeen relatively less exploration of PPM within internal development departments, warrantingfurther investigation. To contribute to the understanding on strategy implementation throughPPM and its conditional factors, this qualitative case study expands the existing research bystudying the PPM process within an internal development department. The study wasconducted at the Business Improvement department, which oversees improvement projects forthe service branch of EnergyComp, a company specializing in the development of complexenergy solutions. Using an abductive research approach, a literature review was conducted inparallel with data collection and analysis. The empirical data was mainly collected throughsemi-structured interviews at the company, but also through meetings and companydocumentation. The results of the study show that PPM actions connected to projects, portfolio and resourceallocation are undertaken to effectively implement the organization's strategy within theinternal development department. Common to all areas is the importance of accurate andavailable information that effects the decisions connected to strategy implementation. On aproject level, Insufficient information poses challenges in accurately assessing project success,resulting in measurements that fail to cover all strategic objectives. In the context of theportfolio, the absence of project information and uncertainties can lead to a misalignmentbetween the actual prioritization criteria employed in the selection process and the strategicobjectives of the organization. Additionally, it may contribute to a less detailed and formalstrategic plan. Furthermore, the cost associated with adjusting the portfolio is directly linked tothe effort and expenses involved in obtaining project information. Regarding resources,insufficient information on supply and demand creates challenges in considering projectdependencies and synergies during the evaluation of project groups. Moreover, limitedtransparency across functional boundaries within the organization leads to a system wheredecision rules cannot be established at the portfolio level. Instead, it encourages bottom-uppriority decisions. Furthermore, a biased assessment by stakeholders in the functionaldepartments may result in an inadequate screening process, leading to an increased workloadin the portfolio structuring process. Finally, the large variation in project types, coupled withdiverse impact targets spanning individual and multiple functions, makes it difficult to createrelevant project categories for budgeting and portfolio structuring.