Research On Financial Risk Evaluation Of Investment And Operation Mode Of KT Environmental Protection PPP Project

With the continuous improvement of people’s material living standard,the demand for public facilities is also on the rise.However,the traditional infrastructure projects completely funded by the government have been unable to meet the public’s demand for social public goods and services.In this context,PPP investment and operation mode has gradually become an important choice for governments in the construction of large-scale infrastructure projects.And it has made great achievements in many fields.At the same time,the characteristics of large investment,long operation cycle and slow collection of PPP projects also bring greater financial risks to the social capital parties involved in investment and operation.But few scholars have made in-depth discussion on it.We take KT Environmental Protection as the research object,start with sorting out the relevant literature on PPP model and financial risk evaluation at home and abroad.Based on public goods theory,risk management theory and principal-agent theory,we then build a financial risk evaluation system using financial index analysis method and factor analysis method.And the financial risk evaluation system is used to evaluate the financial risk of KT Environmental Protection PPP investment operation mode.At the same time,the financial risk of KT Environmental Protection PPP investment operation mode is compared and analyzed horizontally and vertically.The results show that KT Environmental Protection PPP investment operation mode brings great comprehensive financial risk to the enterprise,and the evaluation result is still valid after using the alternative Z-score model.Finally,we propose risk management recommendations for KT Environmental Protection PPP investment operation mode in terms of financing risk control,investment risk control,and operational risk control.So that KT Environmental Protection can overcome its own disadvantages,give play to its own advantages,enhance its market competitiveness,in order to achieve a healthy,sustainable and stable development of the company.This paper not only enriches relevant research,but also provides decision-making basis for relevant enterprises whether to engage in PPP projects.