External Risk Analysis And Control Of An Enterprise's Construction Project In Algeria

Under the guidance of "the Belt and Road" Initiative,more and more Chinese contractors are entering into international market.In 2016,65 Chinese companies were selected into the Top 250 largest international contractors by the United States “Engineering News Record(ENR)”.In terms of market share,these Chinese companies in the Africa market was 54.9% in 2015,more than other regions of the world.Furthermore,Chinese contractors have stepped into Algeria market in the 1990 s and until now it is still one of the largest engineering contracting market to China.Algeria has been under the planned economy system,with oil and gas as its pillar industry.Export earnings account for more than 90 percent of the country's foreign exchange earnings.With the continued decline in international oil price since 2014,Algeria's national income has resulted in a sharp decline.Due to the single nature of economic structure and high dependence of goods on import,inflation's pressure has increased and the devaluation of local currency Dinar has been substantial.As a result,Algeria's economic situation has been extremely severe,which leads to unprecedented risks faced by the active Chinese companies in this market.This thesis systematically identifies the risks of Chinese contractors in Algeria by document analysis method,screens these risks through expert brainstorming method to determine 26 key risk factors,and established a list of external risk factors for the construction of contracted Algerian projects.On this basis,it conducts multiple researches using expert investigation method(Delphi method),and qualitatively analyzes the 26 risk factors.In addition,according to risk management theory,combined with the case company and market characteristics,it establishes a scientific risk management system and sets risk control processes.Finally,it applies the research result to case projects,proving the adaptability and effectiveness of the conclusion.This thesis combines the author's work practice in Algeria in recent years and takes a Chinese state-owned enterprise in Algeria as study object.From the point of view of comprehensive risk management,the conclusion draws a good guidance both in theory and practice.Hope that this paper can be used for reference by Chinese contractors being in or entering into Algeria market,provide scientific risk management case for the overseas development of Chinese companies and guarantee the implementation of “the Belt and Road” Initiative.