Assessing the risks of asian development projects: A theoretical framework and empirical findings

Abstract

The global construction market has been gradually changing from general contracts to development projects. It is necessary to perform risk management for international construction projects because there can be multiple risks for which the degree of risk can be very high. Although international construction project risk management is important, there has been very little research regarding objective and quantitative risk assessment that reflects the project characteristics and decision-making. Therefore, research into risk assessment in Asia-centered international development projects (IDPs) is necessary. The purpose of this study is to identify and analyze key risk indicators (KRIs) through a proposed risk assessment framework for Asian Development Projects (ADPs). The methods and procedures of this study are as follows: First, quantitative indicators of main risk are identified. Second, critical risk indicators are analyzed and assessed by applying Fuzzy theory and the Analytical Hierarchy Procedure (AHP) methods. Finally, risk response attitudes are suggested and 12 risk indicators are selected according to priority evaluation in ADPs.