Investment Risk Management of Construction Project

The goal of this paper is to evaluate economic efficiency of a development project, including sensitivity and probability analysis of selected residential development project. In theoretical part, the term "development project" is explained and project lifecycle is described. In this part there is also mentioned, how cash flow is determined, how cash flow report is created, and how economic efficiency indicators are calculated. It also describes specific risks of a development project. In the end of theoretical part, possible risk identification and evaluation methods are described. Practical part is focused on an actual development project. It evaluates the project using economic efficiency indicators, sensitivity analysis and probability analysis