Document Detail

Title: RS181-1 - Risk Assessment on International Projects: A Management Approach
Publication Date: 2/1/2004
Product Type: Research Summary
Status: Supporting Product
Pages: 38
Provides an overview of how this CII research effort led to the development of the International Project Risk Assessment (IPRA) tool. The summary explains how to use the tool (CII IR181-2) and makes recommendations to those who are pursuing international projects.
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Abstract

U.S. owners and contractors are aggressively pursuing international business opportunities and projects. While international projects may appear as attractive investments, such projects usually involve elevated levels of risk. The successful delivery of such projects has proven to be difficult for owners, contractors, and other participants to the process, including investors and insurance interests.

Assessing and managing risk is a complex and critical task for international construction projects. Risk assessment includes the identification, cataloging and evaluation of specific hazards and uncertainty. Risk management is the entire spectrum of activities associated with identification, evaluation, and the control or mitigation of risk. Previous CII research has documented the need for risk assessment and management procedures. When properly conducted, risk assessment and management yields:

  • Early identification of hazards and opportunities
  • Communication of risks between project participants
  • Identification and management of uncertainty
  • Acknowledgement of risk issues and mitigation actions
  • Enhanced risk-based decision-making

 

CII formed the International Project Risk Assessment Project Team to develop a management tool to identify and assess the risks associated with international capital projects. The scope of this research was risk assessment for international projects; however, given its importance, the project team considered, to a limited extent, risk control and mitigation.

This summary provides an overview of the IPRA research findings, research and IPRA tool development, and an explanation of how to use the tool. Also included are recommendations to practitioners who are pursuing international projects.