Risk Analysis And Management Of Yingde Oxygen Production

Industrial gas which being used in all areas of the industrial economy is one of the national economy bases, called the "blood" of industy. With the development of the related industry, such as the energy,health care, the industrial gas has developed so fast in China. Many industrial projects have been constructed during this time. These projects have some important features ,like high professionalism,large-scale,long payback period, high safety requirements etc, so there are much risks in the construction and production of the industrial gas. Once a risk occurs, not only the investor can't make a profit, but also the environment and society have a lost . Therefore, the risk assessment and management research for the industrial gas projects has much practical significance. Yingde oxygen project is an attract investment of Rizhao city, which would enjoy many preferences like tax,land,water,electricity using .The project plans to supply industrial oxygen to Rizhao Iron and Steel Ltd and other company in this area, which will effectively improve the gas supply deficiency for the city. Therefore this project could make good social and economic benefits.Based on the basic theory of risk management, this paper analyzes and evaluates the risks of Yingde oxygen project. First, it is believed that there are four important risk factors which impact the profit of the project throughout its life cycle. They are completion risk, market risk, production risk and financial risk. Second, it uses qualitative analysis method (experts investigating)and quantitative analysis method(break-even analysis,sensitivity analysis,probability analysis and risk graph method) to come to a conclusion that: it is acceptable for the overall risks of this project, but the completion risk and the production risk should not be overlooked, attention should be given to control of risk factors and strengthen the design,management. This article concludes with a risk management system model of Yingde oxygen project and the organization form of risk management institutions. It also puts forward specific measures to prevent the above risks.This article discusses a single project, but it shows the general problem of industrial gas projects. Therefore, the analysis has some reference value for the related risk analysis and assessment of industrial gas projections.