Risk management of construction

Abstract

The role of financial risk management in increasing the financial stability of a construction company and reducing the likelihood of losses related to non-core risks is very large. The ability to identify and assess risks, as well as understand how possible adverse events can affect the final financial result, increases the manageability of the company’s asset portfolio and the predictability of the financial results of its business activities.

Any company is exposed to business risks. Its incomes may rise or fall depending on changes in the environment, competition, production function, due to the emergence of new technologies, or changes in factors affecting consumer preferences. It should be noted that in Uzbekistan, unfortunately, financial risk management has not yet begun to play that significant role in the field of developing management decisions that it plays in the West. Due to historical circumstances, the development of financial risk management began in our country later than in the West, in fact, like the Uzbek business itself.

An important role is played by the fact that the risk management system cannot simply be copied from a Western standard and imposed on Uzbek companies. There is no doubt that risk management in our country is not just different, but also must be different from risk management in Western companies due to the Uzbek specificity. And this is not only about the liquidity of foreign exchange markets, but also about the needs to design an Uzbek risk management model with the possible use of existing tools and taking into account the experience of Western companies.

The purpose of this article is to develop recommendations on risk management in times of crisis for construction companies.

The results obtained from the research can be implemented in the activities of construction companies and used in educational methods.