Risk Management Ofgeneral Contracting Project In Africa

There is a traditional friendly relationship between China and Africa countries, since decades ago China began engineering assistance to Africa. In recent years, with the motto of "going-out", Chinese enterprises accelerate its pace of going-out, Africa is becoming the fasted growing market of China in contracting the new contract and annual turnover. However, due to historical reasons and special political, economic, geographical, and resource environment, project risk management in Africa become more and more important. In this study, is based on this background.Firstly, the goal of this study will be introduced. Nowadays, risk management on enterprise level is being strengthened, meanwhile, the risk management on project level is still much to improve. The author is trying to summarize a plausible method for project risk management in Africa based on his own actual work experience.Next, review the present domestic and foreign academics’researches on risk management, the origin and development of risk management theory, especially the history of domestic academics’ study on risk management, and how the modern project risk management originated from risk management. China adopted late in the research and application of risk management, but the level and development of risk management is catching up dramatically. June6,2006, the State Owned Assets Supervision and Administration Commission issued the "Guidelines for Central Enterprise in Wide Risk Management", which means China is in the center of the global stage of risk management. In this part, author introduces the current risk management status in his company. Accordingly his company issued a "Comprehensive Risk Management and Internal Control Manual" in2012, also takes itself to a new stage of risk management.Then, author starts this research according to the prepared methods and technical route, aiming at the main process of project risk management, based on related theories, to expatiate related ideas and research methods, with preliminary discussions about risk management in African EPC projects, to establish an evaluation index system for EPC projects in Africa.Finally, with the case of Djiri water project in Congo (B), the actually application of project risk management practice are introduced, it will be analyzed and compared with the established evaluation index system of project risk management, in order to confirm the value of the established system to project risk management practice.In this research, analytic hierarchy process, ABC analysis, risk coordinate graph, four quadrant method and etc. will be introduced to appraise project risk, the differences between the different methods in practical application will be studied; finally, puts forward the corresponding measures of risk factors.Through this study, is to establish an applicable evaluation index system of risk management to EPC projects in Africa, accumulate some experience for the implementation of the EPC contracting in Africa and other areas in the future.