A Study On The Risk Management Of The Redevelopment Of State-Owned Nonfarming Land Project Invested By Corproration

The redevelopment of state-owned nonfarming land projects has been put into practice by Land Reserve Center of local government for a long time, and corportation can take part in these projects investments on a limited scale. Since April 2011, Land and Resources department of local governments and their sub-organs, Land Reserve Centers, were forbidden to invest in the redevelopment of state-owned nonfarming land project directly by the Ministry of Land and Resources of the State Council. Such kind of projects will be operated by corporation mostly. The risk control dicisions that corporation made to reduce the risks and the effects of those decisions will affect the realization of the investment aims of corporations. As the risk management of the redevelopment of state-owned nonfarming land project invested by corporation is still in the beginning and exploration period in China, both theory and practice are lack of deep study.Therefore, the study on the related theories and existential cases of the risk management of this kind of project can certainly play a significant reference role.This paper applies the literature method, mathematical method and case research method to the study. At first, this paper summarises the situation of study of the risk management theories at home and abroad, and the related theories about the redevelopment of state-owned nonfarming land projects operated by corporation, especially focusing on introducing the manipulation models, the financing models, the related theories and flow of the redevelopment of state-owned nonfarming land projects operated by corporation. Meanwhile, it pays more attention to the factors that endanger the achievement of the investment goals of corporations from the angle of project risk management. Then, based on the theory of project risk management, this paper divides the risk management analysis process into five steps which are risk identify, risk assessment, risk control decision making, execute risk control decisions and evaluate effect of risk control decisions to analyze the case study of S project in Suining, especially by using the Analytic Hierarchy Process (AHP) method, identifies the prophase risk factors and evaluates performance of the risk control decisions at the late phase of S project in Suining. Finally, on the basis of the effects of the risk control decisions of the S project in Suining, this paper summarizes the risk management advice about the redevelopment of state-owned nonfarming land projects invested by corporation from the following four points which are investing prudently, constructing flat roof reasonably, monitoring and controlling risks during project execution, and bidding plots in the operated project timely. These suggestions have prevalent meaning of guidance on how to invest and operate the same type of project by corporations.