Risk Management Research On Commercial Vehicle Project Based On System Dynamics

The traditional method of risk management lacks ability of revealing thecomplicated non-linear relationship between factors. It makes difficulty tounderstand the real relationship between factors. But the one based on systemdynamics can resolve it.The article analyzed merits and demerits between the traditional method of riskmanagement and the one based on system dynamics. By comparing the difference ofthose two methods and apply the method of system dynamics to the case ofcommercial vehicle project. It aims to reveal the rationality of risk managementresearch on commercial vehicle project based on system dynamics.By identifying the risk factors throughout the lifecycle of commercial vehicleproject, the article establishes the system of risk in different phases of the lifecycle. Itestablishes the models on risk identification and assessment by applying the methodsof system dynamics. It reveals the measurable relationship of causing effects betweeninterior and exterior risk factors. It offers the basis of further research for decisionmaking on the risk of commercial vehicle project.Finally, the article designs the primary process, which is suitable for riskmanagement on commercial vehicle project. It will be helpful to make decisionduring risk occurrence.