Qualitative Risk Assessments in Project Management in Construction Industry

¹ V.A. Trapeznikov Institute of Control Sciences of Russian Academy of Sciences, st.Profsouznaya, 65, Moscow, 117997, Russia
² Virgina Tech University, Pamplin 3090, 880 Campus Drive, Blacksburg, VA 24061, USA
³ Moscow State University of Civil Engineering, Yaroslavskoe shosse, 26, Moscow, 129337, Russia

^* Corresponding author: ibur27@gmail.com

Abstract

Modern economic conditions require construction companies to promptly prevent, identify and manage risks in various areas of their construction activities. As this research shows, many of the best practices of corporate risk management are adopted and applied in large Russian construction companies and in various industries. At the same time, the results of the research demonstrate the possibilities for further development. Key areas of development include: the process of integrating risk management into the development strategy of a construction company, the collection and accumulation of statistical data, interaction between units, the participation and active participation of key stakeholders, and the quality of information on key risks. Risk management is one of the most important functional areas in the methodology of project management in the construction sector. In practice, as a rule, in addition to quantitative risk assessment, qualitative risk assessments in construction is also always utilized. However, the theory of risk management based on qualitative assessments is virtually absent in the Russian practice. This article provides a definition of qualitative risk assessments and complex risks in the construction field. We desceibe the tasks involved in risk management in construction and propose algorithms for solving corresponding problems in the construction field.