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http://dx.doi.org/10.6106/KJCEM.2016.17.3.090

Development Acceptable Risk Model for International Construction Projects - Focusing on Small and Medium Construction Companies -  

Hwang, Geunouk (Department of Civil and Environmental Engineering, Yonsei University)
Park, Chan Young (Department of Civil and Environmental Engineering, Yonsei University)
Jang, Woosiki (Department of Civil and Environmental Engineering, Yonsei University)
Han, Seung Heon (Department of Civil and Environmental Engineering, Yonsei University)
Kang, Sin Young (International Contractors Association of Korea)
Publication Information
Korean Journal of Construction Engineering and Management / v.17, no.3, 2016 , pp. 90-97 More about this Journal
Abstract
Since Korean construction firms have steadily advanced into the international market, small and medium construction companies (SMCCs) have also advanced in such market. SMCCs's recent trend have clearly shown the changes of contract types from single subcontractor projects to multiple general contracting projects. However, among those multiple projects performed by SMCCs, 1 out of 3 projects were deficit projects that impact the overall pe rformance of the firm. To increase such performance, risk management for in international construction must be managed at the enterprise level for SMCCs. This research aims to create a multiple project management model for SMCCS that employs the concept of acceptable risk to assess the limit risk level for corporation to acceptable. Using the accumulated data from previous survey and International Construction Association of Korea (ICAK), integrated risk of each firm and their profitability of each project are analyzed. Through the analysis, each firm's acceptable risk level is derived. Through the two research steps, acceptable risk algorithm was developed based on corporate integrated risk and profit correlation. To prove the acceptable algorithm relevance, financial statement analysis of 3 corporation was derived that level of acceptable risk and financial statement were available. Through the approach, this research allows the firms to analyze the firm's capability and find projects that suits the firm's situation and capability.
Keywords
International Construction; Acceptable Risk; Multi-Project Management; Risk Management; Small and Medium Sized Company;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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