Portfolio Risk Management of Construction Projects in Russian Company

The investigation touches upon problems concerning project portfolio risk management in construction industry. Today knowledge and skills in this field of management are demanded among professionals due to volatile business environment. Russian construction companies most commonly face the challenge of effective portfolio risk management. The research aims at creating methodological recommendations on portfolio risk management of construction projects in the context of Russian Construction Company. For data collecting questionnaires and in-depth analysis of company’s documents were employed. The risks were analyzed using qualitative (risk maps and the expert assessment) and quantitative (the scenario analysis and the Monte-Carlo simulation) tools. The proposal is intended to lead to better estimates of portfolio risks and elucidate the issue of portfolio risk management in Russian construction companies. Methodical scheme of the portfolio formation process taking into account risks in a cut the three scenarios was developed and tested to the real data. Also, organizational scheme of project portfolio risk management process was proposed considering the portfolio formation method. Implementation of the schemes proposed allows the company to increase the likelihood of achieving the strategic goals, form a diversified portfolio of construction projects, optimized within the constraints and strategic goals, as well as improve the efficiency of investment.