Importance Currently, investing activities are associated with significant risks. Projects can be mainly implemented if project risks are effectively managed. The changeability of decisions can be qualified as a real option. Models for evaluating real options should be coupled with generally accepted methods of project analysis for purposes of effective management in uncertainty. Objectives The research analyzes real options as tools to manage project risks. Methods The real options analysis method was compared with methods for qualitative and quantitative analysis of risks as used for project management purposes. We briefly overview economic and mathematical methods for evaluating real options, and analyze them as management models. Results We reviewed various real options; identified a correlation between them and project risks; analyzed factors building the value of real options; considered examples of an option-based approach to analyze investment projects. The article formulates an algorithm for analyzing real options and selecting an evaluation model in line with a project risk type and the nature of source data. Conclusions and Relevance The real options method and project risk analysis methods can be used to take decisions in the unstable economic environment. Risk manageability can be very valuable in non-stationary conditions, however in such circumstances the evaluation of real options can be complicated, thus requiring a more thorough examination.
Keywords: real option, risk, management, unsteady conditions
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