In 2002, the International Contractors Association of Korea identified and published the following risks that resulted in financial damage to the international construction company:

As a project manager in an international company, you have been involved in the planning phase for future contracts in Korea, how do you manage the above-mentioned risks?

Support your answers with examples.

1.As the buyer, the local government might not have ability or willingness to pay for thecontract.

2.The local government might have some misunderstandings regarding contract provisions orspecifications.

3.Theremightbeariskoffluctuationofcurrencyexchange rate.

4.Your estimations as the seller for the productivity of the procurement project during theimplementation of contract might be lower than actual productivity due to unfavorable climateconditions.