Research on risk cost measure of large project based on VaR theory

Useing Var theory to measure cost risk of large project is new idea in measure risk cost. The paper extended Var concept and calculating principle in Finance to project cost management field, establishing investment portfolio based on construction project and proposing new connotation of Var calculating theory in cost risk management area. Then an example was applicated to verify the feasibility of this research thought. At last further research focused in Var calculated method to be applied to cost risk. This explore is the foundation of deep research cost risk management of large project and its purpose is to provide quantitative decision-making support of the field.