Reputational risks in the construction sector in terms due diligence.

Abstract

The article is devoted to the consideration of the features of assessing the business reputation of contractors in the construction industry. In modern conditions, the collection of information about the business reputation of a potential business partner is necessary to form an opinion about the degree of its reliability. The article summarizes the key factors and indicators for assessing the counterparty's business reputation in the context of the industry specifics of construction organizations. These factors and their indicators are designed to form a comprehensive view of the business reputation of the organization. For this purpose, a factor model is used and the value of the generalizing index is determined, its ranking is carried out. Depending on the obtained value of this index, a possible strategy for responding to the identified reputational risks when interacting with counterparties is determined. CZU: 174.4:[005.336.6:69]; JEL: M49; DOI: https://doi.org/10.53486/isca2023.32