Risk is one of the inevitable facts of business life. There is no sector that can carry out business without risk. All risks must be measured and managed. Economic crises have led to the emergence of the concept of risk management, which has become more sensitive than the outcome of a crisis emerging elsewhere in the globalized world, increasing the importance of risk awareness and risk management. Construction is one of the leading sectors in economy and the sector carries high risk and low profit margin. Financial risks, such as operational risks, are among the most frequently encountered and risks to be managed in the construction sector. Financial risk appears to be the most effective risk when risk categories are ranked according to their loss effects.
In this study, financial risks in construction projects will be discussed from the perspective of project management. The results show that the success of construction projects may depend on how well the project risks analysis and manages. In today’s economy, effective risk management is a critical component of any winning management strategy.