RIPOTOLA, ROCHELLE D.

DATE: March 22,

2022
BSSE-3A

SEATWORK NO. 2

How does a feasibility study help in the realization of a project and how can it help in risk
prevention?
A feasibility study, also known as a project appraisal, is a critical step in the development
of a project. When data is imprecise or unavailable, it is critical to evaluate alternatives as
well as to identify and assess risks.
Feasibility studies address business perceptions over a fairly longer period of time rather
than taking a short-term view of things. It will look at how a project will operate in the
long run and how it will withstand any financial risks that may arise. It also helps in the
assessment of potential cash flow. It asses the financial aspect as well as the technical,
legal and economic perspective of a business. In terms of the operational aspect, it
determines if the plan has the resources required to make it a reality. It tries to answer
when, how, and where the firm will operate, and it's generally carried out well long
before project selection or execution. When it comes to the initiation phase of a project,
the feasibility is crucial. Another significant role of this is to help planners in focusing on
the project and narrowing down the options. You think of it as a measure of success or a
projection for your business. Every project has a goal, but you never want to add more
costs to execute a project at a profit of mere pennies. A feasibility study might provide
reasons why a project or idea should not be pursued. It’s a research study to find out if
the proposed project is possible with a high probability of success. It helps in establishing
the fundamentals necessary to support the project. Some projects failure is due to the
reason of not conducting this kind of study, so it’s a great idea to have feasibility study to
prevent the risk of complete failure.