The Study Of Risk Management In Project Financing

Project Financing, as a new financing tool, was emerged in the international capital markets in 1970s and developed into an efficient-used financing method in infra- structure. In the mid of 1980s, China introduced Project Financing for the first time. As capital market opens more widely to the outside world, Project Financing gains rapid development and plays important role in infrastructure financing. But as it's specialty, long negotiation, a wide variety of involved parties and complicated estimating exposed to many risk and so that it is asked to implement rigid supervision and risk management during the whole financing course. But Project Financing is still at the qualitative analysis stage and leaves us many things to explore, so the paper is emphasized on the method of risk identification, analysis and control.The paper is divided into 4 parts: Chapter 1 describes the background, aims and study status in domestic and abroad. Chapter 2 is the whole acquaintance of project financing risk management. Through introducing the main theory of project financing and concept of risk management systematically, the paper deduces the specialty. Chapter 3 is the risk identification and assessment of project management. The risk is divided into two styles: Controllable Risk and Uncontrollable Risk, and discusses the concrete risk in all kinds separately, uses a dynamic fuzzy evaluation method. Chapter 4 is the risk analysis of project management. Uses CAPM to analyze systemic risk. Then uses cash flow model, sensitiveness analytical method and some appraisal criterions to carry on the risk analysis of financing decision.