IMPROVING RISK MANAGEMENT MECHANISMS IN INVESTMENT PROJECTS IN THE CONTEXT OF GREEN ECONOMY
Abstract
The global transition toward a green economy has fundamentally altered the risk landscape of investment projects, necessitating new analytical frameworks and management tools. This study examines risk management mechanisms specifically tailored to green economy investment contexts, with empirical evidence drawn from Uzbekistan's rapidly expanding green investment sector (2020–2023). Using a mixed-methods approach combining systematic literature review, risk matrix construction, comparative model analysis, and case-based empirical observation, this paper proposes a Hybrid ESG-AI Risk Management Framework (HEARMF) as an integrated solution. The framework addresses six principal risk categories — environmental, financial, technological, reputational, operational, and geopolitical — and integrates ESG-aligned due diligence, dynamic scenario planning, green bond structuring, AI-powered monitoring, and multi-stakeholder governance. Findings indicate that adoption of the proposed mechanisms correlates with a 31.6% reduction in composite risk scores and an improvement in risk-adjusted returns from 6.2% to 9.4% over the study period. The study contributes methodologically by bridging conventional financial risk management with sustainability imperatives and provides practical guidance for policymakers, investors, and project developers operating in emerging green economies.
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