Application of a Fuzzy AHP Method to Risk Assessment of International Construction Projects

Risk assessment is becoming more emphasized in international projects decisions. In this paper, the international project risk assessment starts with the risk classification using the hierarchical risk breakdown structure. Based on the three-level hierarchical structure, a risk index (R) model is designed to assess the effects of all the risk sections and sub-sections (factors). The effect scores of risk factors are assessed using fuzzy logic approaches, and weights of risk factors and risk sections are determined using AHP method. The risk index (R) performs two functions: evaluate sources of risk and accordingly prioritize international projects.