Han, S H; Diekmann, J E; Lee, Y and Ock, J H (2004) Multicriteria financial portfolio risk management for international projects. Journal of Construction Engineering and Management, 130(3), pp. 346-356. ISSN 0733-9364
Abstract
While opportunities for international construction firms have been growing with globalization, the risks involved with international construction projects are increasing significantly. However, due to the complex skein of various risks, it is difficult to evaluate the severity of risk variables at the corporate level and to examine key success factors in an attempt to maximize a firm's value under the challenging global business environment. This paper focuses on a financial portfolio risk management for international projects to integrate the risk hierarchy of both individual projects and at the corporate level, which applies a multicriteria decision making method to maximize the total value of firms. To demonstrate the approach, a case study is conducted based on real projects collected from a multinational general contractor. Finally, we present lessons learned as well as guidelines for the application of these lessons to future projects through a workshop with industry practitioners.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | bids; corporate planning; financial management; international development; risk management |
| Index terms: | general contractor, success factor, international development, lessons learned, international project, international construction project, decision-making, corporate planning, globalization, practitioner, financial management, case study, workshop, international construction, risk management |
| Subjects: | professional development, economic factors, decision analysis, practitioner, construction type, risk assessment, strategic management, data collection methods, business, economic analysis, health monitoring assessment and metrics |
| Topics: | Health and Safety, Business Strategy, Information Management, Research Practice, Roles and Professions, Risk Management, Governance, Construction Technology, International Construction |
| Descriptive scope: | 3 PCE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here