Operational Development Project Investment And Financing Regional Risk

Project risk is defined as a probability of loss occurrence because of various hazards or adverse impacts during the course of project life cycle. Western project exploitation, in fact all project development, must be confronted with the threat of many kinds of regional risks owing to environmental constraint characteristics of the specific area. Hence, the influences of those external environmental risk factors, which include nature, politics, law, economy, science, technology, society and culture, make up the regional risks of western developing project (RRWDP), in which regional investment/financing risk (RIFR) is the most important one. Whereas qualities and characteristics of working developing projects and non-productive ones are different, RIFR of working developing project is emphatically studied in this thesis. Its major contents, methods used and suggestions made are as follows:1. RIFR discernment and distinguishing factors. In the beginning, RRWDP is firstly defined and classified according to disparate standards. Then, RIFR, the most important risk of RRWDP, is studied chiefly on the basis of its definition. Through making use of environment analysis , four primary specific exterior RIFR, political-legal risk, market risk, structure risk of main body, risk of lack of qualified human capital, are analyzed respectively to expatiate upon the main causes of RIFR .2. RIFR assessment. The first section is concerned with a brief description of the content and methods of evaluation. The second section is concerned with RIFR evaluation of actual developing projects: (1) their absolute magnitudes and relative order of four risks based on sensitivity analysis of risk index; and (2) the comprehensive risk grade evaluation of RIFR through integrating fuzzy subordinate function with fuzzy integrative evaluation method. The third section is concerned with decision-making between selective investment or financing plans on the basis of the result of risk grade evaluation.3. RIFR prevention and control (P&C). First, the necessity to establish internal P&C system is demonstrated and some suggestions are made. These include setting up risk management division with a matrix organization structure, strengthening systemic application of several common managing tactics and establishing a warning system to avoid or control RIFR. Next, specific measures are presented in accordance with the four distinguished primary specific exterior RIFR.