In competitive organizations and projects, assessing risks related to human capital is essential for improving workplace conditions and ensuring project success. This study evaluates primary, secondary, and residual human capital risks in urban water transfer projects using an innovative hybrid DEMATEL–MARCOS approach. The DEMATEL method was employed to analyze causal relationships and interdependencies among risks, while the MARCOS method ranked their significance. The key findings reveal that “accidents during material transportation” (primary risk), “corrosion” (secondary risk), and “pipeline pressure” (residual risk) are the most critical factors influencing human capital in such projects. The study provides a structured framework for prioritizing risk mitigation strategies, offering actionable insights for policymakers and project managers to enhance safety, efficiency, and workforce well-being. By integrating multi-criteria decision-making techniques, this research bridges a gap in the water industry’s risk management practices and contributes to safer, more sustainable infrastructure development.
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