THE IMPACT OF COMMERCIAL RISK IDENTIFICATION PRACTICES ON PROJECT PROFITABILITY: EVIDENCE FROM LARGE-SCALE INFRASTRUCTURE PROJECTS
DOI:
https://doi.org/10.71146/kjmr866Keywords:
Commercial Risk Identification, Infrastructure Projects, Project Profitability, Risk ManagementAbstract
This study explores the impact of commercial risk identification practices on the profitability of large-scale infrastructure projects. As these projects are characterized by their complexity, long timelines, and substantial financial investment, understanding and mitigating commercial risks is crucial for ensuring their success. The research investigates the relationship between effective risk identification processes and the financial outcomes of infrastructure projects, using empirical evidence from multiple large-scale projects. Data were collected through interviews with project managers, financial analysts, and risk management professionals, supplemented by a review of financial performance records. The findings suggest that projects that implement comprehensive and systematic commercial risk identification practices tend to experience higher profitability due to reduced cost overruns, better resource allocation, and improved project timelines. Additionally, the study identifies key risk factors—such as market volatility, regulatory changes, and supply chain disruptions—that significantly influence project outcomes. The paper concludes by offering recommendations for practitioners on enhancing risk identification processes to optimize profitability in future infrastructure endeavors. This research contributes to the growing body of knowledge on risk management in infrastructure projects and highlights the importance of proactive risk identification for financial success
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Copyright (c) 2026 Qaisar Ali (Author)
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