What if a project should not be carried out?

MAIA Action – March 2026

Author: Dr. Stefania Manes – Financial Risk & Governance

The value of " non-investment " decisions.

In the business world, we often talk about opportunities, growth, and new investments.

The value of decisions unrelated to investments is discussed far less frequently.

However, a fundamental component of good governance is precisely the recognition of when a project may appear interesting on paper, but does not offer sufficiently solid prerequisites for its implementation.

The allure of seemingly promising opportunities .

Many projects arise from justified intuitions: a new market, an emerging technology, an opportunity for industrial development.

Initial enthusiasm, however, can lead to an underestimation of three fundamental elements:

• the operational complexity of the initiative;

• the actual availability of the necessary financial resources;

• regulatory or market risks.

If these dimensions are not analyzed with the necessary rigor, there is a risk that the project will become a lengthy, costly and uncertain process.

The cost of bad decisions .

In many cases, the true cost of a project consists of more than just the direct financial investment.

It is also necessary to consider the following:

• the time provided by management;

• the company's financial risk;

• the alternative possibilities that are overlooked.

For this reason, the preliminary assessment of initiatives should always include a structured analysis of the risks and sustainability conditions.

The discipline of strategic decision-making .

A mature organization is characterized not only by its ability to seize opportunities, but also by the discipline with which it selects the projects to which it dedicates its resources.

This requires:

• independent analysis;

• Comparison of alternative scenarios;

• Clarity regarding strategic goals.

In many cases, the most prudent – and in the long run most effective – decision may be to postpone or abandon a project.

Not because the idea is wrong, but because the conditions for sustainable implementation are not yet in place.

Note.

If you would like to explore the impact of these issues in your specific operational context, you can initiate an initial conversation with the MAIA Action Team .

The initial meeting serves to understand the context of the project or organization and to assess whether and to what extent independent advice could be helpful in the decision-making process.

To arrange a meeting or an initial introductory conversation, please use the contact section of the website.