A Study Of Financial Risks From Overseas Investment Projects

More and more enterprises encouraged by the government strategy of "going abroad" enter oversea market. Compared with domestic communication project, oversea projects will face more uncertainty, and require scientific response to the project financial risks. This study makes assessment to the 丁 project of China Communication Construct Company, in order that this project will run smoothly in a stable operating condition, and also requires a useful model for the future oversea projects.On the basis of the existing research literature, and comparing a variety of financial evaluation method such as Delphi method, risk evaluation. AHP and so on this study selected the AHP to research the financial risks of the T project. Firstly, the three risk resources of the 丁 project are analyzed and a hierarchy is constructed; secondly, the evaluation membership matrix is confirmed, the consistency is tested, and the weight of the risk indicators is determined; finally, the comprehensive evaluation is applied. From the macroscopic, middle and microcosmic aspects, the tax risks, the political risks the country policy risks and the risks from the lack of the overall concept are analyzed and they are the four influential financial risks for this project.For these four major financial risks during the project implementation the tax burden should be reduced, the local rules should be studied the emergency plans should be developed, the financial staffs should be trained, and the national policy should be followed closely. These could avoid the risks of the economic loss, and the project could be in a controlled state.