| Title |
Risk Assessment Methodology By Analyzing Degree of Perception for Project Characteristic Factors on Cost Performance |
| Authors |
Cha Hee-Sung ; Shin Gang-Yong |
| Keywords |
Risk Factors ; Cost Performance ; Decision Making ; Assessment Tool |
| Abstract |
Risk factors are significantly related with project overall performance. Risk analysis and management play an important role in decision making related with both project selection and technology selection. Therefore, risk management is an effective decision support aid in considering whether to launch a particular project. The industry challenges, for example, labor shortage, wage growth, and supply chain complexity, have often resulted in poor cost performance. One of the main reasons for this inefficiency is that there is no sufficient assessment methodology in evaluating particular project characteristics. Because the accuracy level of cost performance prediction can be enhanced by extensive evaluation of the subject project characteristics, a new approach for predicting cost performance in an earlier stage of a project can improve the industry substantiality. The purpose of this paper is to identify the relationship between the project risk factors and the overall project success, in terms of economic efficiency. The extensive industry survey resulted that there are significant factors which affect the project performance. In addition, the paper proposed an assessment methodology in predicting the cost performance of a subject project in view of project characteristics. The main contributions of this paper include the enhancement of systematic approach in evaluating project risks and improvement a predictability in terms of project performance. |