Navigating Capital Project Uncertainty in 2025: Economic Challenges and Strategic Solutions

The Risky Planner

In this episode of "The Risky Planner" podcast, hosts Nate Habermeyer and Albert Brier tackle the pressing issue of uncertainty in capital investments during 2025's volatile economic climate. The hosts discuss how inflation, interest rates, supply chain problems, and trade tensions are creating unprecedented challenges for capital project planning.

Albert shares his experience with a major oil company where project cancellation led to significant ripple effects and wasted resources. The conversation explores how companies are responding to uncertainty, with many pausing investments not because opportunities aren't available, but because risk assessment has become increasingly complex.

Key topics include:

• Jerome Powell's warning about higher inflation and slower growth
• The impact of tariffs on cross-border procurement
• How uncertainty affects project schedules and budgets
• Strategies for quantifying and visualizing risk
• The importance of corporate-level risk tolerance guidance

The hosts conclude with practical advice for project executives: while caution is warranted, complete investment freezes can worsen stagflation. Organizations should carefully evaluate which projects might remain profitable despite uncertainty, applying wider uncertainty bands to all projections.

Resources mentioned:

• White paper on quantifying and visualizing project risk: www.dokainish.com/projectrisk
• Risk webinar available https://dokainish.com/project-performance-through-risk-visualization/

Presented by Dokainish & Company www.dokainish.com

The Risky Planner podcast delivers expert insights on project controls, capital project management, and strategic planning for today's complex business environment. Subscribe for regular episodes featuring industry leaders and practical advice.