Multicriteria Financial Portfolio Risk Management for International Projects
Publication: Journal of Construction Engineering and Management
Volume 130, Issue 3
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.
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 130 • Issue 3 • June 2004
Pages: 346 - 356
Copyright
Copyright © 2004 American Society of Civil Engineers.
History
Received: Mar 12, 2002
Accepted: Apr 23, 2003
Published online: May 14, 2004
Published in print: Jun 2004
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