Multicriteria financial portfolio risk management for international projects

Seung H. Han, James E. Diekmann, Young Lee, Jong H. Ock

Research output: Contribution to journalArticle

41 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)346-356
Number of pages11
JournalJournal of Construction Engineering and Management
Volume130
Issue number3
DOIs
Publication statusPublished - 2004 May

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Building and Construction
  • Industrial relations
  • Strategy and Management

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