| Title |
A Decision Support Model for the Exchange Risk Management of Overseas Construction Projects |
| Authors |
An, Chi-Hoon ; Yoo, Hyun-Seok ; Kim, Young Suk |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2012.13.3.109 |
| Keywords |
OVERSEAS CONSTRUCTION PROJECT ; EXCHANGE RISK ; MANAGEMENT MODEL ; EXCHANGE RATE |
| Abstract |
Overseas construction project orders have shown steady increase since 2001, and it took 44.5% of the total construction project orders in 2010. Overseas construction project needs more complex risk management because it is affected by more various circumstance factors than the domestic construction is. Previous studies have centered on the internal risk factors to assist the decision-making, but there are few researches on the importance and techniques of foreign exchange risk management. Inadequate management of foreign exchange risk has been found to cause huge damages due to the lacking recognition on the importance of foreign exchange risk management. Therefore, current study designed a foreign exchange risk manage model to help efficient management and decision-making. This model was developed as a technique to meet the demand of the increasing overseas construction projects for the efficient management of foreign exchange risk, and the technique will lower the risk with more and more accurate outcome by accumulating the data of profit-and-loss. |