Management Of Financial Risks Of International Engineering Project

With the rapid development of national economy and economic strength increasing,International engineering project has entered a rapid development period.In 2016,foreign engineering project completed and new signing contracts can be $1594.2 billion and $2440.1 billion respectively,and the year-on-year growth of 3.5%and 16.2%.In January to July 2017,foreign engineering projects completed and new signing contracts can be $775.6 billion and $1352.7 billion,respectively,0.6%and 18.7%year-on-year growth.International engineering project's amount is huge,long construction period,multiple risks to project implementation process,in addition to the political risk and social risk in the host country,the financial risk is also the point of a project manager which should be pay attention to.The financial risk of international engineering project contracting comes from the change of interest rate,inflation and exchange rate risk.I will build a VAR model,including exchange rate risk and inflation risk,to analysis the influence of international engineering project,the necessity of management and emphasis on financial risk to verify.At present,the measures taken by international engineering contracting enterprises are various,each of which has advantages and disadvantages.This paper will analyze the implementation effect of these measures,and through this analysis,to guide the international project contracting enterprises to take appropriate risk management measurement.This paper will refer to China Power Engineering Co.,Ltd.which is executing the Turkey power plant construction projects,this project is at risk of devaluation of the US dollars,domestic inflation,owner financing risk and so on,these aspects are influence each other,by means of analytic hierarchy process(AHP)systematic and hierarchical these interactional factors,in order to explore the effective way to avoid risk.