China's Foreign Aid Project Risk Management Models And Policy Research,

The uncertainty between the reality and the expected results of engineering project management is so-called as the Engineering Risk.The Governmental-aided Engineering Project is a special field in term of the trans-national project construction and management, which is dominated by the governmental behavior and has a more complicated feature of engineering risks in depth and width. So, controlling and diverting engineering risks through effective risk management is certainly demanded for promoting the further development of governmental aid career.In accordance with the theory of RISK MANAGEMENT SYSTEM, risk management is a systematic mechanism composed of five steps, which are risk judgment, risk classification, risk analysis, risk attitude and risk resolution. And the final purpose of risk management is risk resolution. Risk resolution has four basic forms including risk assumption, risk reduction, risk diversion and risk evasion. Different combinations of these four basic forms create the different models of risk management.This article comprehensively reviews the 50-years-long change and development of the risk management models of Chinese Governmental-aided Engineering Projects, and mainly analyzes and introduces the establishment and development of the NEW RISK MANAGEMENT MODEL of Chinese Governmental-aided Engineering Projects since 1997. The new risk management model with the principle part composed of three institutions, which are contract-price adjustment, engineering insurance and total responsibility of pre-reservation expenses, establishes a mechanism to reasonably divert and assume the engineering risks between the government, enterprises and insurance companies. But the new risk management model also faces some new problems and challenges, and has some weaknesses to be improved in term of structure, system and practice.In specific view of the Government as both the administrator and formal owner of the Governmental-aided Engineering Projects, this article comprehensively goes over the macro-management and micro-practice of the risk management model of the Government-aided Engineering Projects and put forward some policy suggestions to further improve practice of the risk management model and introduce creative institutions.