Research On Integration Risk Management Of M&A Project In Baowu Company

Project risk management refers to the management activities of the project management organization to identify,evaluate,respond to and monitor the risks that may be encountered during the whole life cycle,so as to achieve the project objectives at the lowest possible cost.The work of the M&A project in the integration stage affects the overall success or failure of the project.It has the characteristics of large scale of integration,many integration factors and wide integration impact.Therefore,it is necessary to pay attention to the risk management work in the integration stage of M&A and restructuring projects.Based on the project risk management theory and taking the activities of the integration stage of Baosteel and Wuhan Steel M&A projects as an example,this paper discusses the methods and processes of integrating risk management in M&A projects.Firstly,through the practice research and analysis of the background,basis,organization and history of the M&A project of Baosteel and Wuhan Steel,the project integration risk management plan is formulated.Then,based on the work breakdown structure of the project integration phase,the project integration risk identification is carried out.The Delphi method is used to identify the project integration risk factors to obtain 44 preliminary risk factors.The fishbone diagram method is used to classify and analyze the risk factors,and the expert scoring method is used.A list of 33 significant risk factors was selected to form a list of project integration risk factors.Secondly,based on the analytic hierarchy process(AHP),the project integration risk is quantitatively evaluated,and a three-level hierarchical structure model is established.The risk factors evaluation at the program level and the criterion level is completed,and the comprehensive evaluation value of the project integration risk is obtained,and the project integration risk is finally sorted.classification.There are 8 risk factors for serious risk levels,13 risk factors for general risks,and 12 risk factors for minor risks.Finally,based on the results of the project integration risk assessment,detailed risks are set for the general risks and serious risks of the six risk categories,including strategic integration risk,organizational integration risk,financial integration risk,personnel integration risk,product technology integration risk,and cultural integration risk.Countermeasures,and analyzed the project integration risk monitoring plan,integrated risk contingency plan and integrated risk control measures.This paper provides a relatively complete implementation plan for risk identification,risk assessment,risk response and risk monitoring during the integration phase of Baosteel and Wuhan Steel M&A project,which is conducive to the quantitative,systematic and dynamic project integration risk management.The proposed integrated risk management solution can also provide reference for risk management of other similar M&A projects during the integration phase.