Risk from neighbor's construction?
Two big risks.

One, they excavate properly but do not backfill properly.  This will cause settling over time to your foundation. (Highly likely)

Two, they do not excavate properly and dirt falls from under your foundation during excavation causing immediate damage (unlikey, but possible)

Have them excavate the basement for shotcreting (excavation is held off your foundation at least a foot or so), and then shotcrete the foundation walls instead of a stand form and pour.  This eliminates both problems.