The Study Of Risk Management Of Chinese Enterprises Overseas Projects

In the environment of globalization at present, domestic construction enterprises want to become bigger and stronger, must develop a way to go abroad, but many domestic enterprises are lack of overseas project management operation strategy, and often do international projects according to a set of domestic methods, which may always met with some risk points that do not appear in China, and it may lead them to a very passive situation or even get serious loss and have a failed project. Therefore, it should adjust measures to local conditions to make strategy analysis to overseas projects, to prevent the possibility of risk.Compared with international rivals, the current domestic enterprises are lack of thorough risk management system in operating overseas projects, the research of risk management process is still in its infancy, the establishment of some aspects such as risk definition, risk identification, risk analysis, risk evaluation, risk control measures as far has not reached a mature level. In allusion to present situation, the domestic enterprises need to set up an effective risk management system for overseas projects, to improve the level of risk prevention, to reduce and avoid the loss from the risk of constructing overseas project.This paper will do risk assessment and hypothesis of liability of foreignness of Chinese enterprises who enter overseas market through the Project Risk Management theory and combining the theory of Liability of Foreignness, consulting the materials and case summary of the project risk management done by domestic and foreign scholars, combining with the current domestic enterprise risk management model and the typical cases of COVEC’s failure to European market. This paper will analyze through some different risk areas and put forward a set of suggestion of risk management system model for overseas projects, suggesting that to consider liability of foreignness rationally, and convert it reasonably, at the same time to do risk transfer of all kinds of risks, such as insurance, subcontracts, etc.to minimize the possibility of osses while operating overseas projects, convert the "Chinese Mode" to the "World Mode with Chinese characteristics".