Corporate risk management for global contractors

While the globalization of international construction market provides tremendous opportunities for global contractors, the risk of international projects is significantly increasing. However, the traditional risk management approach for overseas projects has maintained a single profit focus. In addition, this approach does not consider the overall risk at the corporate level, but rather focuses on the individuals project. This paper discusses a corporate risk management approach that can be implemented from the initial stages of potential project selections. It then develops a multi-criteria integrated portfolio analysis tool to make strategic corporate level decisions for the selection of intermational projects. Finally, to demonstrate and validate the approach, a case study is conducted based on the historical data collected from a multi-national general contractor.