Research On Investment Risk Management Effect Of China’s International Construction Project Under EPC Mode

Nowadays, with the integration of the world economy and the global development,construction market displayed a global tendency. Investment scale of InternationalConstruction Project has been gradually enlarged, there are various risks in the courseof implementation, owner will confront with great economical damage because ofcarelessness, therefore, risk managemant is necessary management procedure, relatedresearch shows that risk management is a critical factor for success of a InternationalConstruction Project, therefore, How to measure the effect of risk managementbecome important research content. This paper stand by the owner of China’s side,research the rate of return of International Construction Project under EPC mode riskmanagement and risk management performance evaluation and risk managercompetancy evaluation and the integration of risk evaluation methods.rate of return ofmanagement and risk management performance were used to measure the effect ofrisk management and go deep into it. Risk management method and competency of riskmanager are the key element which can determine the effect of risk management, sothe integration and improvement of risk management methods and how to evaluatecompetency of risk manager were researched in this paper.Firstly, the rate of return of management was described in detail, and then there is aclear definition to the concepts of rate of return of International Construction Projectunder EPC mode risk management, the concepts and category of risk managementcost and risk management profit are given, on this basis, the forming of efficiency ofrisk management on the theory was revealed. Measurement of risk loss is the base ofrate of return risk management, in this paper, decision tree analysis，AnalyticHierarchy Process and set-valued statistic are used to evaluate risk loss ofInternational Construction Project under EPC mode, a method that used to measurerisk loss was put forward, then a model was established to measure the rate of returnrisk management, a case study was presented to verify the feasibility of the model.Due to the rate of return risk management can only reflect benefit of risk managementFrom the perspective of finance, evaluating achievement and results of riskmanagement completely must based on analysis and evaluation of the performance of risk management. the concepts and classification of performance and performanceevaluation were intorduced, the definition of risk management performance ofInternational Construction Project under EPC mode was put forward, principle of riskmanagement performance was given, the main investment risk in InternationalConstruction Project under EPC mode were studied, and the risk managementperformance evaluation index system was established, then a model based on fuzzyAnalytic Hierarchy Process was put forword to evaluate risk managementperformance of International Construction Project under EPC mode. A case studywas presented to verify the feasibility of the model.On the integration of risk management methods of International ConstructionProject under EPC mode. Since fixed weight determined by analytic hierarchyprocess has many shortcomings, synthetic weight was determined by the results ofanalytic hierarchy process based on variable weight and entropy weight method,subjective judgment and objective calculation were combined, then improved fuzzysynthetic evaluation was put forword. risk matrix method was improved according toits shortcomings, and combined with Analytic Hierarchy Process, improved riskmatrix method was put forward.On the risk manager competency evaluation of International Construction Projectunder EPC mode. The concepts and related theory of competency were introduced,duty of risk manager was analyzed comprehensively, characteristics of risk managercompetency was refined from analysis of literature data and semi-structure interview,the risk manager competency evaluation index system combined qualitative index andquantitative index was established, then a model based on improved fuzzycomprehensive evaluation method was put forword to evaluate risk managercompetency of International Construction Project under EPC mode. A case study waspresented to verify the feasibility of the model.