Risk level evaluation of construction investments projects

Abstract

Management of investment risk is a usual practice of any investment project or business. The estimation of risk must be carried out at various project stages. In practice it is impossible to avoid not exhaustive and inaccurate information, therefore, unfavourable risky situations occur, the consequences of which can be very damaging to the project or business. Due to close cooperation of the participants of the project the risk occurring in one stage of the project can transfer to other stages and one type of risk can change into another one. This means that chain reaction is characteristic to the risk and it decreases efficiency and safety of any project or business. Various types of risk can be caused by different factors. Classification of risk is determined by efficiency of risk management organisation. Risk classification is understood as risk allotment according to certain features into concrete groups for reaching the set objectives. Conceptually reasoned risk classification allows defining the role of each risk in the total system of all risks. This paper presents methods of multi-attribute comparative analysis (CLARA and SAW methods) of variants of investment classified risks in construction. A practical case of illustrating the methods work is presented.