Classifying Key Risk Factors in Construction Projects

Risk management is an important step in project success. It is the process of identifying, classifying, analysing and assessing of inherent risks in a project. Due to the nature of the construction projects which consists of many related and none-related operations, many risk factors will contribute in a project. To have an effective risk management plan, at first step the key risk factors which have the most effect on project objectives should be identified and classified. This paper is an investigation of different risks which may be involved in construction projects. Project management functions which have the most effect on risk management plan are categorized and an analysis of key risk factors in every category is described. Finally a hierarchical risk classification to cover all the effective key risk factors in construction projects is suggested. Case studies have shown that this classification covers the most key risks that should be taken into consideration in a risk management plan.

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