The STG Group has presented the best report at the forum of financial directors of the construction industry

Link to a photo gallery of the event.

The results of the fourth forum of financial directors of the construction industry have been summarised. The report of Andrey Ivanov, the STG Group representative, headed the list of 26 participants who delivered the reports.

The fourth forum of financial directors of the construction industry was organised by the Financial Directors’ Club and CFO-Russia.ru portal. Chief financial officers of the companies, heads of departments of corporate control, planning and accounting took part in the event.

Development trends of the construction industry, the most relevant ways of cost optimisation, search for funding sources and obtaining the most profitable terms, correct assessment of the project tax risks and many other pressing issues were discussed.

Andrey Ivanov, Director for Control of Project Management Standards of PJSC STG, delivered the report “Risk Management in Construction Companies: Identification of Weak Signals, Increase of Risk Significance”. The forum participants were very much interested in the STG approach to such issues as current risk management practices, tools and methods of managing risks of counterparts’ bankruptcy as well as the positive outcomes of the crisis for contractors. Andrey Ivanov made the following comments in his interview to CFO-Russia.ru: “It is extremely important for the company to be able to determine a forthcoming bankruptcy. It allows to predict it and develop the respective preventive measures, thus cutting the company’s costs. We have developed the list of indicators of the counterparts’ forthcoming bankruptcy. They are based on behavioral features of a subcontractor. For example, systematic engagement of less number of project workers than the contract stipulates. If the project plan compliance is about 50-60% and after putting pressing on the subcontractor the number of engaged specialists increases two or three times compared to the initial number, the risk of the subcontractor’s “overheating” is very high. It is quite possible that the project is being performed with the last strength and as far as other construction projects are uncovered with labor resources we will observe the situation of creepy decrease of the number of the project personnel. Combination of several indicators suggests the growing subcontractor’s bankruptcy risk, the need to cease funding of the works performed by such subcontractor and change of the counterpart”.

According to the feedback from the participants, the event was very informative. The questionnaire survey of the participants showed the following results: the report of Andrey Ivanov took the lead, the second position was divided by Anna Il’nitskaya (Rose Group CFO) and Yulia Batarova (CITY XXI CFO), Valeriya Malysheva (Lenstroytrest CFO) was the third.

In 2009-2012 Andrey Ivanov held the position of Director of Department of Organisational Development and Management Technologies in Stroygazmontazh LLC. From 2012 he was the head of Division of Project Activities Development in the Strategy and Development Department of JSC Sberbank of Russia. Since 2013 he has been employed by PJSC Stroytransgaz.