A risk management proposal to the international contractors industry from the financial perspective

Construction companies face threats from competition, the need to adapt to modern technology, and changes in customer expectations. These issues require efficient risk management techniques. However, construction companies are late adopters of total quality management, one of the major risk factors in the industry. Moreover, the construction industry in developing countries faces systemic risk related to the application of laws as well as political risks (such as those to Turkish investments in African countries). Risk can also arise from failures to implement safety and budgetary risk controls. Understanding and adapting the financial aspects of a project is a key determinant in the international contractor market. One of the market’s critical challenges is schedule management and the understanding and application of program management. This requires an analysis of both the challenges and rewards of a project. Poor working environments, inadequate building safety, damaged surroundings, and a lack of insurance are issues at construction sites. Turkish construction companies operating in developing countries are trying to minimize their risks, especially through a better understanding of the risks associated with working in those countries. This paper uses systematic risk identification, classification and analysis, measurement, and response methodologies to help international contractors obtain a quantified determination of the risks of project development and execution. -- construction risk ; risk management ; international construction ; risk measurement ; insurance ; budgetary contro ; schedule management