Risk assessment of marine construction projects using Taguchi Loss Function

Abstract

Today complicated and risky environment makes risk assessment and identification one of the main steps of proper project management and realization of project objectives. Marine construction projects are key and strategic projects, and their specific nature adds to their importance. This study aimed to propose a method for risk assessment and ranking critical risks in marine construction projects in Iran. To this end, the risk assessment team was formed to identify serious marine construction project risks using risk breakdown structure. Afterward, the team defined risk assessment measures. All risks were assessed in each criterion based on the Taguchi loss function. It allowed decision-makers to define a measurable risk threshold for each criterion and assess risks by developing a common language called loss score. Finally, critical risks were determined based on their priority. The results can be used to improve effective risk management, and consequently, project management.