The Evaluation And Control Of Project Financing Risk

In the domestic financial market, the project financing has become a very important means of the large-scale project funding, but the project financing is different from the general company loans, the lenders generally only use cash flow of the project itself as the insolvent sources, so the project financing credit risk faces much more than other traditional modes of financing. In addition, the project financing has characteristics such as complex intructure, big operation difficulty, more participants and more risk factors, etc, so the potential risk is very great. As a result, the project financing risk assessment and the correct and effective measures of risk management becomes the key factor, and how to effectively manage the financing risk is what all projects especially the lending banks must carefully consider. The study ,analysis and discussion of the project financing risk management has very important practical significance.Basing on the characteristics of project financing itself, this text anlyse the environment of lending banks, and points out that the bank to project financing risk management is of great importance.On the basis of a simple introduction of project financing and risk management theory, we make a systematical assessment and control on the risk of lending banks, and mainly introduces the risk assessment method and risk control measures. Finally, we reach the conclusion from two aspects: on the one side, the risk assessment ability of our banks, currently, needs further strengthening. In order to strengthen their ability to identify the risk, our lending banks should refine the workflow, establish the risk files, hire professional project financing advisors and make a comprehensive evaluation on the risk of project financing from both qualitative and quantitative aspects. On the other side, the specialized talents of project financing are the inevitable choices for our lending banks to strengthen their risk control on project financing.