Multicriteria Financial Portfolio Risk Management for International Projects

Seung H. Han, James E. Diekmann, Young Lee, Jong H. Ock
2004 Journal of construction engineering and management  
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
more » ... ement 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.
doi:10.1061/(asce)0733-9364(2004)130:3(346) fatcat:mocdkunxgndkbpixvy4ojir5ti