International Project Risk Management Case Study

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Abstract
The industries are expanding their business into new foreign markets as a result of the globalization of international markets. International projects involve a wider range of issues than domestic projects. It is very essential for the companies to understand the risks involved with the international projects and their effects for sustained competitiveness and growth in a global market. International Project Risk management is the systematic process of identifying, analyzing and responding to project risks associated with international projects. This paper aims to explore the different categories of risks involved in international projects and illustrate the various risks involved in each category.

Keywords- globalization, international
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The international projects differ significantly from the domestic projects as moving outside the usual working jurisdiction may bring many unknown difficulties in executing the projects(Nicholas & Steyn, 2009). For most international projects, the project life cycle is divided into various phases and different participants are responsible for and control of them. Mostly the project owner takes the responsibility of programme analysis, the design and engineering is controlled and managed by any third party whereas the construction is handled by a contractor. Division of project into various phases and responsibilities can increase the chances of risk occurrence. Individually project participants become more concerned about risks related to their own phase and try to transfer the overarching project risks to other…show more content…
The following four risk mitigation strategies are commonly used. (PMBOK, 2004)
4.1 Avoid- This strategy suggests not undertaking the activity that is likely to trigger the risk. The risks related to fraudulent practices must be handled with this strategy.
4.2 Reduce- This strategy suggests to control the probability of occurrence of a particular risk or to control its impact. It is the most commonly used strategy in international projects. Most of the risk categories like economic, political, operational, cultural, technical, managerial, design, internally generated risks etc. should be responded with this strategy.
4.3 Transfer- This strategy suggests to transfer or share the risk responsibility to some other party by means of contract, partnership/joint venture or insurance. The risks like legal or contractual risks and subcontractor related risks should be responded with this strategy. Some of the financial risks can also be handled by using joint ventures or

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