International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 05 Issue: 05 | May-2018
p-ISSN: 2395-0072
www.irjet.net
FRAMEWORK DEVELOPMENT TOWARDS FINANCIAL RISK MANAGEMENT FOR INDIAN CONSTRUCTION SECTOR Subin Philip George1, Jenson Jose2 1MTech
Student, Dept. of Civil Engineering, St. Joseph´s College of Engineering and Technology, Palai, Kerala, India 2Assistant Professor, Dept. of Civil Engineering, St. Joseph´s College of Engineering and Technology, Palai, Kerala, India ----------------------------------------------------------------------***--------------------------------------------------------------------As a results of the method of risk management: Abstract - Construction risk management is way quite buying insurance within the event of a fireplace or flood. it's evolved over the years as a business philosophy. Construction firms should confirm the way to mitigate the likelihood of losses and also the consequences that will occur. These firms should additionally arrange earlier to adequately fund for losses once they happen. during a tight economy, risk management are often the protect that forestalls a construction company from closing its doors and going out of business. Risk management has main primary perform on shield the money viability of the organization. this is often accomplished by distinguishing and managing risk exposures. one in all the most important exposures that construction firms face is “passive retention” of loss, or the losses that arise that weren't on the organization’s microwave radar screen.
2. OBJECTIVES
Key Words: Net Present value, Value at RISK, Mat Lab program, Primavera, Cost.
1. INTRODUCTION Risk is outlined because the chance of an occurrence and its consequences. Risk management is that the observe of mistreatment processes, strategies and tools for managing these risks. Risk management focuses on distinguishing what might fail, evaluating that risks ought to be restrained and implementing ways to subsume those risks. Businesses that have known the risks are going to be higher ready and have a more cost effective approach of managing them. Risk management is an endeavour to live, to spot, to observe and to manage uncertainty. Risk management on a full integrates production, marketing, and money choices. Risks in construction comes are often outlined because the chance of an occurrence that impairs the viability of the project.
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Impact Factor value: 6.171
To prepare a form for measuring every and each project undertaken during this study Time schedules and price associated with the comes. To analyze and compare the time schedules and price of the similar comes undertaken with nearly identical initial prices with “add on” and to represent identical mistreatment graphs. To find net present worth of every project mistreatment Formulae and to check the results mistreatment graphical representations. To find the deviation and value at risk of budget in the comes and to relate to the risks undertaken to mitigate this deviation. To compare all risks undertaken in Indian business with Primavera. To generate Mat lab program to evaluate financial loss in the clients side for choosing an investment.
3. RESULTS 3.1 General
The following question arises – at what level risk ought to be taken just in case of a specific go for order to win the tender and to secure funding for risks that ar terribly tough to assess. money Management and Risk in Construction depicts the connection between the development Project Manager’s task of your time reconciliation, would like of satisfying quality the client’s needs expeditiously and price. Effective and skilled while at identical time tributary to the contractor’s future property.
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Improves decision-making, coming up with and prioritisation Helps you assign capital and resources a lot of expeditiously Allows you to anticipate what might fail, minimising the quantity of fireplace fighting you've got to try and do or, during a worst-case situation, preventing a disaster or serious loss Significantly improves the chance that you simply can deliver your business arrange on time and to budget
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Three construction outcomes are chosen for the study. Questionnaires were to be distributed among the project managers within the project. Desired answers within the form were to be compared mistreatment graphs.
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