Development of International Project Risk Index (IPRI)

Since the mid-2000s, Korean large-sized construction companies have pursued in earnest to expand their business to global construction market in surroundings that domestic market have a continuous and long-term stagnation. However, during last a few years, they have experienced the serious financial loss from international projects. In the meantime, for the sound improvement of Korean construction industry, many stakeholders long for efficient early warning signals to generally monitor and track the potential risks of international projects. In this study, we introduce an International Project Risk Index (IPRI), which is derived from massive data provided by large-sized companies, and expect to provide the practitioners and decision makers as an aid to proactively cope with the change of the potential risks. The outcomes from the IPRI can be utilized to prepare a timely management strategy and to establish an appropriate government support regulation.