Risk Management in Multinational Construction Companies

Running head: DESIGNING RESEARCH
Risk Management in multinational construction companies while developing projects in
foreign countries
Name of the Student
Name of the University
Author note

1DESIGNING RESEARCH
Project Summary
Over the last decades with the raising of global demand construction industry has faced huge
profitability and expansion across the globe. At the same time, despite of this huge
profitability and expansion the construction industry is also famous for its risky operations.
For any overseas constructional project delivery the risks are associated with several phases
with project planning, development and delivery. The purpose of this research is to examine
the risk issues and their interconnection in overseas construction projects and to find the
appropriate procedures or way outs to avoid the risky issues. For this exploratory study
combine data collection process has been proposed where the literature review was proposed
for secondary data and interview was proposed as primary data collection process. QDA
Miner based data analysis process for this research has been proposed in this proposal.

2DESIGNING RESEARCH
Table Content
Introductory Background...........................................................................................................3
Research Questions....................................................................................................................4
Aims and Objectives of the Project............................................................................................5
Significance/Contribution to the Discipline...............................................................................6
Theoretical Framework and Method..........................................................................................7
Budget........................................................................................................................................9
Timeline...................................................................................................................................10
References:...............................................................................................................................11

3DESIGNING RESEARCH
Introductory Background
Construction is a one of the major global industries that has currently a valuation of
2.3 to 7 trillion worldwide monetary turnovers. It has been suggested that the construction
industry is currently producing 13.4% (as per the report of 2012) profit worldwide that could
be increased by 14.6% by 2020 (Liu, Zhao and Yan 2016). The construction industry is a
complication of many business operations and interventions namely mobility of labour,
production plant, capital and operational investment, electronic communications and others.
However, with the growth of the globalised industrialisation the mobility of workforce has
become of the major criteria in construction industry. At the same time, despite of this huge
profitability and expansion the construction industry is also famous for its risky operations.
These risks are ranged from financial risk, workforce risk, and physical risk to non physical
risk. Here non physical risk implies the risk related to market reputation, CSR (Corporate
social responsibility) activity, employee engagement and other non physical business
components (Han et al. 2014).
The overall constructional operations can be segregated into two sections, namely
building construction and transportation related construction. In both cases the demand of
international construction companies is raising rapidly. With the raising of global demand the
cash flow is also increasing (Yildiz et al. 2014). Over the last decades the international
trading policies have been also changed significantly increasing the financial and legal
complexity of any overseas business operation. The constructional industry is not an
exception in this case. With this increasing complexity the risk of losing market reputation,
value, profitability and labour support is also increasing radically. Governments of many
countries such as China, India, Middle East, Eastern Europe and other developing market are
taking several financial policy related steps in order to deal with the national infrastructure