Risk Management During The Project Of Developing New Products In Shanghai Changji Geological Instrument Co.,Ltd

Since the Reform and Opening Up, along with the reform of economic system and the development of market economy, a number of small-sized private companies have flourished in different fields of the national economy and provided substantial support to the nation’s overall economic construction. However, due to their inherent characteristics, these companies’development of new products will be affected by many factors, which results in some risks.Under such background, many small-sized private companies begin realizing and attaching much importance to analyzing risks during the development of new products so as to minimize as well as prevent risks and promote success of their efforts. The consequences, however, are not on the same level as different companies hold different perspectives and practices. Therefore, it is important to apply to the theories of project management, research issues of assessing risks in developing new products by small-sized private companies and improve risk management during such development.This paper takes Changji Instruments, a representative small-sized manufacturing company, as the study target; and applies to one of its projects for developing new products to evaluate risk factors influencing the project, identify and establish the indicator system as well as construct the model for such risk evaluation. It is proposed to utilize expert judgment and analytic hierarchy process (AHP method) to evaluate risks hidden in the study case and analyze the result in an integrated way, which helps provide evidence for managing and responding to risks, and moreover, provide experience for reference in other such projects. Finally, the paper puts forward some framework advices about risk management for the company’s projects of developing new products.