The Risk Management Study On PFI Method

Risk management is one of the important contents of the project management. As a new-type and private-financing project method in public service and public utility, PFI can solve the problem of the money shortage and the management inefficiency in public investments, and so it gets relatively rapid development in many developed country. But PFI project whose environment change and develop constantly is characteristic of large scale of investment, long life circle, many participants, and intricate risks. So risk management is a key problem in PFI project. Successful risk management is the assurance that goal of PFI financing project is realized.Based on the characteristic of PFI model, the paper mostly studies on the project risk of PFI model and probes into risk identification, risk evaluation, risk allocation and risk avoidance in the PFI project with the help of methods, such as risk management, Project management, Finance Management, Technical Economics and so on.This paper firstly made a general analysis on the basic theory and content of PFI model. Secondly, from the view of the risk management theory, this paper raises the theory structure of the risks management in PFI project. Based on the above mentioned studies, this paper further made a discussion on the risk management processes as for PFI project. It is proposed that a completed risk management for the PFI project should include five related processes, which are risk identification, qualitative risk analysis, quantitative risk evaluation, risk allocation and risk control and avoidance. As a fundamental work in risk management, the risk identification comprehensively analyses and summarizes the potential risk categories in the PFI project. Then, the risk management process moves on to the qualitative and quantitative risk evaluation to determine the overall risk ranking for the PFI project and the list of prioritized risk. At the same time, on the basis of analyzing the current methods of appraisal of project risk, the paper puts forward a model based on AHP and Fuzzy Comprehensive Evaluation to make it possible to evaluate the PFI project risk. Because proper strategies of risk allocation are especially crucial for successful PFI projects, the paper discuss the problems of the risk allocation in PFI projects. Furthermore, the paper especially discusses several crucial risks'control and avoidance in PFI model.