Expanded polystyrene (EPS) is a lightweight material that many people recognize as being used in packaging materials. EPS is an innovation building material that lends to design and structural integrity of many building projects. Nowadays, EPS became a powerful design element and an ideal choice for green building design, offering tangible environmental advantages that can maximize energy efficiency, provide improved indoor environmental quality and enhance durability. Recently, EPS is manufactured as a flame retardant grade, which reduces the risk of accidental fire. With all of the previous advantages of using EPS, there are still some risks associated with the utilization of this material in the construction sector, especially when it enters to the market as a new product. This study aims to assess the risks that could come up with the use of EPS material as a relatively new product in the Libyan construction sector.  A total of 30 risks were identified and recognized into seven main categories; resource, technical, economic, management; design, installation, and others. The risk of “sudden change of foreign exchange rate” under the economic risks category, and “lack of training readily available” under the technical risks category were the most frequently mentioned risk factors.