Some aspects of risk management in the investment and construction sector

Abstract

Risk is an important factor that results from the execution of any economic decision and occurs in the conditions of uncertainty and cyclical development inherent in a market economy. Classification and assessment of risks specific to construction organizations is a complex and strategic task based on the application of various models, taking into account the industry’s risk management features. The purpose of this work is to study the methodological and practical aspects of risk assessment for making management decisions in the investment and construction sector. The study focuses on such interrelated concepts as “uncertainty” and “risk” and their impact on business performance in the market conditions. The authors prove that the risks typical for the construction industry in Russia have their own specific features and depend on such significant factors as the level of taxes, the volume of orders, the cost of materials and structures, the availability of sufficient financial resources, and the payment capabilities of customers. Depending on the categories of construction companies, the most significant risks are identified (technological, commercial, investment and innovation risks). The authors studied the essence and features of risk assessment taking into account international standards and practical aspects in the investment and construction complex. The scientific article reveals the role of risk management in risk management in the investment and construction sector, the main problems of using methods to minimize risks for various categories of construction organizations in Russian practice.