Study On Risk Management Of International Telecommunication Project Under EPC Contract

With the further development of our nation's economy and the expanding of its reform and opening policy, an increasing number of overseas markets have been opened up by Chinese enterprises, among which the international telecommunication projects under EPC contract are known for its high risk probability resulted from its large scale, long period, various participants as well as other factors in terms of political, economical, social, cultural ,technological, natural and environmental considerations. Thus for China's telecommunication enterprises, to treat effectively and reasonably various kinds of possibly-met risks is necessary both for its existence and development in the overseas market.The present study starts with analysis of features of EPC contract conditions as well as relevant theory of project risk management. Then with the international telecommunication EPC project as a background, a detailed theoretical analysis has been made about risk prediction & identification; risk appraisal & analysis; risk treatment plan & risk monitoring as well as plan implementation in international telecommunication project management, and meanwhile a theoretical framework of risk management has been established concerning different stages of the lifecycle of international telecommunication EPC project, according to which international telecommunication project risk is divided into two levels:the"project level"and the"Model Level". The risk weighing rate is determined by the occurring probability and impact on an objective. And which is found to follow a descending tendency from the initiation to the closure of the whole project lifecycle. Thus based on different risk levels, different risk treatment strategies should be designed by the project managers.Based on the above theoretical exploration, a case study concerning risk identification and appraisal as well as risk treatment plan has been made of EPC project risk management of a mobile telecommunication radio network program in Nigeria. Finally some suggestions that are instrumental in international project contract enterprises have been put forward and a summary has been made of what has been studied in the present thesis.In brief, the present study is launched from the perspective of the contractor as an attempt of applying risk management theory to EPC program of international telecommunication project, with the hope of improving the project management level of our nation's telecommunication enterprises and thus enhancing its competitive capability in undertaking international telecommunication project through overall risk management.