Research On BG India Steel Processing And Distribution Center Project Risk Management

To implement the BG company's requirement of accelerating overseas steel processing and distribution center construction and provide overseas customers with better service,the BG company plans to establish a steel processing and distribution center in India.This is an important initiative to achieve the goal of changing BG' competitiveness from steel to material,from manufacturing to services and from China to the world in the new round of planning period of the BG company.BG India steel processing and distribution center project maintains great significance in supporting the products sales in the Indian market and expanding their market share in India.Risk management plays an important role in project feasibility analysis.At the same time,many Chinese companies do not pay attention to project risk research work.Overseas projects differ from domestic projects because of their uncertainty and complexity.Therefore,it's very necessary to carry out risk management research on overseas projects.BG India steel processing and distribution center project risk management research does not only carry out scientific and reasonable risk management on the project itself,but also provides the corporate with experience of risk management on other similar projects.It has great practical significance on the promotion of the corporate's ability to control risks.This thesis is based on the study of project risk management theory and methods.It does research on the external risk factors of BG India steel processing and distribution center project(political,economic,social&cultural,labor and employment,overseas personal safety,etc.)according to the major aspects of risk identification,risk assessment,risk response and risk control.The content of the research is as follows:First,identifying external risk factors of BG India steel processing and distribution center project using empirical analysis and expert investigation method(brainstorming method and the Delphi method);Second,evaluating the external risk factors making use of the Index method of risk assessment,so that it confirms the risks' grade and evaluates their influence on BG India steel processing and distribution center project;Last,raising measures to control and cope with those risk factors for the sake of implementing scientific,reasonable and effective management on the external risks of BG India steel processing and distribution center project.By means of risk identification,six first grade external risks of BG India steel processing and distribution center project are identified,including political risks,economic risks,social and cultural risks,labor and employment risks,overseas personal safety risks and natural disasters risks.Sixteen second grade external risks,including exchange rate risk,tax risk,inflation risk,etc.are also identified.By means of risk assessment,the thesis obtains the sequence of external risks of BG India steel processing and distribution center project in first grade(from high to low):economic risks,social and cultural risks,labor and employment risk,overseas personal safety risks,natural disaster risks and political risks.Finally,according to risk avoidance,risk retention,risk mitigation and other risk coping strategies,the risks coping and control measures are proposed in order to provide protection for the construction of BG India steel processing and distribution center project.