Research On International Project Contracting Risk Control Of The Company A

After China unveiled the Belt and Road Initiative in 2013,a large amount of domestic construction enterprises have been seen to go abroad one after another for project contracting.As one of them,the company A has paid a big price for its weakness of risk control on international project contracting.By referring to the theories of risk management and international project risk management,and carrying out SWOT analysis of international project strategy within company A,this paper figures out the necessity of establishing an effective risk management mechanism for the company A to participate in international competition.And then,based on brief introduction of the general practice in risk control,this paper takes the MB railway project in Bolivia as an example,to analyze the status quo in international project contracting risk control of the company A,as well as the existing problems,and put forward the corresponding improvement measures.The company A has accumulated rich experience in risk control of domestic engineering contracting from its long-term practice,but failed to adjust the risk control strategy timely according to the foreign situation or international market,which led to the failure of MB project in Bolivia.To solve the problems of international project contracting risk control existing in the company A,this paper proposes improvement suggestions in three aspects,which are organization system of risk management and their functions,risk management process,and safeguard measures of risk management.In order to improve the level of risk control in the company A,firstly,a highly effective organization system is required,which should have a perfect corporate governance structure,a dedicated risk evaluation department,and some executive agencies with their specific duties and effective operation.Secondly,risk management flow should go through the whole process of the project,so as to find risk and take measures at early stage,instead of being formalism.Thirdly,it is necessary to establish perfect safeguard mechanism in multiple aspects,such as the staff ideology,internal supervision mechanism,and informatization.Finally,this paper intends to give some help to similar domestic enterprises through the research.