Integrating Cascading Effects into Risk Assessment of Metaverse Implementation in the Built Environment

Abstract

The metaverse in the built environment has emerged as a virtual space enabling real-time interaction between physical and digital elements. However, its implementation faces significant challenges due to the complex interplay of risk factors. The cause-and-effect relationships and cascading effects of these risks remain underexplored, a problem further compounded by the novelty of metaverse applications and the lack of historical data to inform effective risk assessment. To address this gap, this study develops a system dynamics (SD) model to analyse how risks interact and shape implementation challenges. The model identifies six reinforcing feedback loops linking political, economic, social and technical risks, revealing cascading effects that threaten the successful integration of the metaverse into the built environment. Practically, the study offers organisations a decision support tool to prioritise critical risks and a visual model that enhances communication with senior executives, thereby improving strategic planning and resource allocation for metaverse implementation. Theoretically, the study advances risk-assessment literature by conceptualising risks as dynamic, interacting systems, rather than isolated factors, thereby offering a framework that can be applied to analyse complex technological innovations in the built environment.