ABSTRACT
Project risk management is a growing area of concern in the construction industry because a risk can negatively affect a project’s objectives. The success of infrastructure projects is significantly influenced by the appropriate management of risks related to a project. Project risks should be identified, analysed and responded to throughout the life of a project. The project risk management process generally consists of risk management planning; the identification of risk events; a qualitative and quantitative risk analysis; and risk response, monitoring and control. The current chapter presents the types of risks in construction projects; the common risks encountered by international construction projects; risk classification as per different phases of the project; the risk management process in construction projects; common techniques used to identify risks in developing countries; project risk analysis techniques; responding to risk; options for dealing with risks; risk avoidance, reduction and transfer; risk sharing and risk retention.
