International Engineering Project Political Risk And Its Evaluation Research

The implementation of International engineering project is facing various risks. Political risk is one of the biggest factors. The involving uncertain factors in political risk are very complex, bringing great difficulties to measurement and evaluation of the risk. So analyzing and recognizing the political risk factors in the international engineering project implementation and seeking the scientific and effective methods of political risk assessment is particularly important.This paper combines the theory of political risk research and engineering projects, focusing on the analysis of current international engineering project and the political risk research, through summing up experience of political risk assessment both at home and abroad to establish the political risk evaluation system of international engineering project. First of all, based on theories of international engineering project and political risk, summarizing the international engineering projects as well as the types, characteristics and development trend of political risk, putting forward the index factors that determine the ideas and principles of the index system building and the political risk assessment involving the index factors, establishing the political risk evaluation system of international engineering project, putting forward the fuzzy comprehensive evaluation method to evaluate the international engineering project political risk level; Then, analyzing the advantages and disadvantages of the commonly used risk assessment methods, started from the need of political risk evaluation, establishing the BP neural network as a political risk evaluation method and improving the algorithm of BP neural network, establishing the LMBP neural network evaluation model in political risk evaluation system of international engineering project; Finally to collect international engineering project training sample data to the LMBP neural network model, comparing with the fuzzy comprehensive evaluation method evaluation results, verifying the model accuracy and reliability, and list one in Algeria’s international engineering project as an example, to demonstrate the practicability in international political risk evaluation system of practical project.This paper focused on the political risk assessment of the international project to discover the suitable evaluation methods and identifying the level of the political risks in international project, is of great value to prevent and avoid political risks to international engineering contractors and enrich international political risk theories.