Probability and Impact Perspectives on Cost and Schedule Risks in International Construction Projects: An Empirical Investigation

Numerous studies about risk assessment have been conducted in academia, but there is still a gap between practice. To close this gap between practice and academia, researchers should understand and provide improvements based on the actual practice of risk analysis. The purpose of this study is to provide practical knowledge on risk assessment by investigating empirical data on risk probability and impact. This study investigated 124 international construction projects and classified projects into high performance group and low performance group based on profitability and the rate of increase in construction period. And then, this study compares the features of risk probability and impact between two groups by using non-parametric statistical analysis. The results show that project risk, particularly contract risk, demonstrates the highest risk probability and impact on both cost and schedule performances. Conversely, capability risk demonstrates the lowest risk probability and impact. The study also suggests the major risk factors with both a high level of risk probability and impact which should be carefully managed in future projects. These findings provide insights into the understanding of practical risk management and can serve as a reference for more accurate risk evaluation by practitioners.